Last look orders come under scrutiny
Buy-side pressures market-makers to eliminate practice
Market-makers stand accused of using last look order types aggressively to dial up the profitability of their books, with some buy-side participants warning the practice deserves as much regulatory scrutiny as the allegations of benchmark manipulation.
Last look market-making allows price providers to reject orders within a short period of time if the trade is deemed unfavourable, which gives dealers a significant information advantage and can damage the execution quality of customers.
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