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Jurassic FX – Pt 2: The Global Code of Conduct and Lastlookosaurus
Previously on Jurassic FX we looked at ‘Prehedgeosaurus’. Now we are going to take a closer look at ‘Lastlookosaurus’.
And so on to our old pal Lastlookosaurus who makes his glorious last stand in Principle 17. A nirvanic world where ‘last look’ is transparent and clients have the use of ‘last look’ disclosed. Yes this is the same beast that cast its shadow over most of the scandals in the last few years. The same beast currently at the centre of a well publicised US case against a large bank and the same beast who’s abuse was highlighted in the latest CFTC fine.
Lastlookosaurus tells us in the code that Last Look may only be used as a risk control mechanism in order to verify validity and / or price. There is mention of consistency with the current market price but no mention of a timeframe for that consistency – in previous drafts a 100ms window was mentioned but that has disappeared from the latest draft of the Global Code. There is no detail around last look but merely the mention that any trading activity and hedging activity is “likely†inconsistent with good market practice. This is wooliness of mammoth proportions!
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US Jobs Preview – Key Insights
There has been a big build up of hawkish Fed expectations into March. A market that only some days back was pricing a less than 40% chance for a Fed rate hike next week, has now all but priced in the Fed raising rates. So why is today’s employmen…
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Daily FX Market Commentary
Good morning, LMAX Close USDJPY 114.954 | EURUSD 1.05769 | AUDUSD 0.75049 | NZDUSD 0.68968 | USDCAD 1.35110 | USDCHF 1.01223 | GBPUSD 1.21648 | LMAX Highs and Lows 6am GMT Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â High | Low EURUSDÂ Â Â Â Â Â Â Â Â Â Â Â Â Â 1.06028 | 1.05722 USDJPYÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 115.431 | 114.988 GBPUSDÂ Â Â Â Â Â Â Â Â Â Â Â Â Â 1.21650 | 1.21504 USDCHFÂ Â Â Â Â Â Â Â Â Â Â Â Â Â 1.01318 | 1.01143 AUDUSDÂ Â Â Â Â Â Â Â Â Â Â Â Â 0.75266 […]
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Is the Euro Sending a Different Message?
Although the US Dollar has been quite strong over the past several days as the market positions for a more hawkish Fed, the Euro hasn’t really gone anywhere at all, with the single currency perhaps sending out a warning that the market shouldn’t get ah…