Last Look: The Quiet Rule Behind Some Liquidity Providers
Posted: Sun Oct 04, 2026 12:43 pm
Last Look: The Quiet Rule Behind Some Liquidity Providers
Behind retail brokers sit liquidity providers that stream prices. In some arrangements, the provider keeps a right called last look, a brief window after receiving an order during which it can accept or reject the trade.
The stated reason is protection. If the market moves sharply between quote and order arrival, the provider may reject trades to avoid being picked off by faster participants. That seems reasonable.
The controversy is about how it is used. If a provider rejects trades that would be profitable for the client but accepts those that would be profitable for itself, the practice becomes a one-way option, and clients experience worse fills on average.
Regulators and industry codes have responded. The FX Global Code, a set of best practices agreed by market participants, calls for transparency about last look and limits on its use. Many providers now disclose their policies, and some have moved to firm pricing.
For a retail trader, the effects arrive indirectly, through your broker. Rejections may appear as requotes, delayed fills, or slippage that is asymmetrical.
The practical response is to look for a broker that publishes how it handles execution, including whether it passes through any last look policy, and to monitor fill quality yourself.
Analyze your slippage in both directions over 50 or more trades. Symmetry is a reassuring sign.
Practical step: ask your broker whether their liquidity providers use last look, and read the answer carefully.
Behind retail brokers sit liquidity providers that stream prices. In some arrangements, the provider keeps a right called last look, a brief window after receiving an order during which it can accept or reject the trade.
The stated reason is protection. If the market moves sharply between quote and order arrival, the provider may reject trades to avoid being picked off by faster participants. That seems reasonable.
The controversy is about how it is used. If a provider rejects trades that would be profitable for the client but accepts those that would be profitable for itself, the practice becomes a one-way option, and clients experience worse fills on average.
Regulators and industry codes have responded. The FX Global Code, a set of best practices agreed by market participants, calls for transparency about last look and limits on its use. Many providers now disclose their policies, and some have moved to firm pricing.
For a retail trader, the effects arrive indirectly, through your broker. Rejections may appear as requotes, delayed fills, or slippage that is asymmetrical.
The practical response is to look for a broker that publishes how it handles execution, including whether it passes through any last look policy, and to monitor fill quality yourself.
Analyze your slippage in both directions over 50 or more trades. Symmetry is a reassuring sign.
Practical step: ask your broker whether their liquidity providers use last look, and read the answer carefully.