Central bankers and industry participants made their strongeststatement yet against the use of last look, the controversialpractice in currency trading that allows dealers to back out oflosing trades.

Government officials and traders who comprise the Global ForeignExchange Committee (GFXC) changed the FX Global Code to indicatethat no one should “undertake trading activity that utilizesinformation from the client's trade request during the last-lookwindow.” That strengthens guidelines issued in May, which didn'tsettle the debate over the lightning-rod issue.

The GFXC is revising the code to outline the conditions underwhich what's known as “cover and deal” may be distinguished.Respondents to a consultation had argued that such tradingarrangements are an important feature of the foreign exchangemarket and so should be named as an exception to the ruling. Thegroup will also look into disclosures about last look on anonymouselectronic trading platforms.

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