Understanding Last Look in Non-Bank Liquidity Providers

The Controversial Topic of Last Look

Last look remains a controversial topic among non-bank liquidity providers in particular, but even its staunchest critics accept it isn’t going away any time soon.

Speaking at the Tradetech FX conference in September 2021, Guy Debelle (who was then chair of the Global Foreign Exchange Committee) referred to Last Look as a topic that generates ‘strong and sometimes diverse views across market participants’ – a comment that many would view as something of an understatement.

He also…

How Last Look Affects Me

As an individual investor, Last Look can impact the execution of my trades, potentially leading to price slippage or delayed trade confirmations. It is important to be aware of how non-bank liquidity providers implement Last Look and to consider this factor when entering into trades.

How Last Look Affects the World

The use of Last Look by non-bank liquidity providers can have wider implications for the financial markets, potentially leading to increased market volatility and reduced market efficiency. Regulators may need to consider the impact of Last Look on market integrity and transparency in order to maintain a fair and orderly market.

Conclusion

In conclusion, Last Look remains a hotly debated topic within the financial industry, with strong opinions on both sides. It is important for market participants to stay informed about the implications of Last Look and to advocate for transparency and fairness in trading practices.