The motion: ‘Last look’ should be banned from FX – A head to head debate, between David Mercer (CEO, LMAX Exchange) and Isaac Lieberman (CEO, Aston Capital Management) at Profit & Loss Forex Network New York, May 2016.
David Mercer argues that the practice of ‘last look’ should be abolished in FX, stating that it was a business solution to a technology problem that no longer exists. Mercer refers to the recent ‘Restoring trust in FX’ market survey where 88% said the practice most open to abuse is ‘last look’. He also argues for a more transparent, robust and fair marketplace and asks, why doesn’t ‘last look’ exist in any other asset class?
– Is ‘last look’ just a ‘free’ option for maker makers?
– Given the supposed benefits of ‘last look’, why should it be banned?
– Are Liquidity Providers still protected with ‘last look’ abolished?
– Does ‘last look’ stop an FX latency ‘arms race’?
– Could banning ‘last look’ be seen as overkill?