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Currency traders race to reform 'last look'

As part of an effort to police themselves, traders are hoping a global code of conduct will help shore up their reputation before regulators crack down harder.

UNDER PRESSURE: Barclays in 2015 was fined US$150 million for abusing its last-look system - and now Deutsche Bank AG faces lawsuits.

"There's a large chunk of the industry that's disheartened by the scandals and by what's happened to the industry, and wants to move to a better place." - Guy Debelle (above), deputy governor of the Reserve Bank of Australia

CURRENCY traders may not be fast enough, at least when it comes to cleaning up their image. At issue is a controversial custom called "last look", which allows market makers to back out of a trade. After allegations of abuse, most major banks have recently taken steps to publicly disclose their...

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