- Investigators have asked Barclays (NYSE:BCS) for information on its electronic-trading platform which contains a program allowing traders a "last look" at an order before placement, reports Bloomberg.
- Last-look is a vestige of the old computer era when the lag between an order being placed and confirmed was long enough to expose the market-maker to an unfavorable price movement. The lag has moved to pretty close to zero, but banks still retain the right to halt trades on a last-look basis.
- “Last look is a hangover from a technology problem that no longer exists, yet still allows traders to reject trades and re-quote orders to the disadvantage of clients,” says David Mercer, CEO of LMAX Exchange, a forex platform competing with major banks.
- For its part, Barclays is reserving another £750M for forex probes, bringing the total expected cost to about £1.25B.