Currency traders may not be fast enough, at least when itcomes to cleaning up their image.

At issue is a controversial custom called “last look,” whichallows market makers to back out of a trade. After allegations ofabuse, most major banks have recently taken steps to publiclydisclose their trading standards to clients. But not all are onboard. Top 10 dealer BNP Paribas doesn't. And a big player inhigh-frequency trading called Tower Research Capital says itdoesn't need to.

Industry executives — still reeling from paying billionsin currency-rigging fines — concede that the largelyunregulated $5.1 trillion-a-day foreign-exchange market coulduse a dose of transparency. As part of an effort to policethemselves, traders are hoping a global code of conduct that's duein May will help shore up their reputation before regulators crackdown harder.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.