Currency Traders Race to Reform ‘Last Look’ After Bank Scandals
- Public disclosures may help image after scandals, fines
- Industry developing code of conduct for trading practices
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Currency traders may not be fast enough, at least when it comes to cleaning up their image.
At issue is a controversial custom called “last look,” which allows market makers to back out of a trade. After allegations of abuse, most major banks have recently taken steps to publicly disclose their trading standards to clients. But not all are on board. Top-10 dealer BNP Paribas SA doesn’t. And a big player in high-frequency trading called Tower Research Capital LLC says it doesn’t need to.