Citadel, Vanguard Call for End to Controversial FX Last Look
- Firms submit feedback on practice to Global FX Committee
- Letters published on Nov. 3; response expected by year-end
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More opponents of “last look,” the controversial practice in currency markets that allows dealers to back out of losing trades, have come forward to air their grievances to central bankers and industry participants.
Their feedback comes at the behest of the Global FX Committee, or GFXC, which is comprised of government officials and market participants. About two-thirds of respondents support changing global foreign-exchange guidelines to limit the use of last look, including Citadel LLC, Vanguard Group Inc. and DRW Holdings LLC, who called for ending the convention altogether. Several banks and a foreign-exchange industry group said the practice is acceptable if adequate disclosures are made to clients.