Pre-arranged TradingWhat Does Pre-arranged Trading Mean? Trading that occurs between brokers through an expressed or implied agreement or understanding.Investopedia explains Pre-arranged Trading
Prearranged trading is illegal under the Commodity Exchange Act and CFTC regulations because it may create an unfair market for other brokers and investors. For example, a commodity dealer might use pre-arranged trading to carry out risk-free trades at predetermined prices rather than at market prices to gain a tax advantage, thus limiting the market for other investors