# How Do Regulatory Frameworks like the GFXC Global Code Address Last Look Practices? ▴ Question

**Published:** 2025-08-12
**Categories:** Question

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## Concept

The practice of ‘last look’ within the foreign exchange (FX) market represents a critical, albeit contentious, feature of [electronic trading](https://prime.greeks.live/area/electronic-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). At its core, last look is a risk management mechanism. It grants a market participant, typically a [liquidity provider](https://prime.greeks.live/area/liquidity-provider/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (LP), a final moment to review a trade request against their quoted price before formally accepting or rejecting the transaction.

This operational pause is designed to protect LPs from adverse price movements that might occur in the milliseconds between quoting a price and receiving a [trade request](https://prime.greeks.live/question/in-what-specific-scenarios-should-a-request-for-quotation-be-used-instead-of-a-request-for-proposal/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), a phenomenon known as latency arbitrage. The existence of this practice acknowledges the structural realities of a decentralized, over-the-counter (OTC) market where liquidity is fragmented and price information travels at varying speeds.

The [GFXC Global Code](https://prime.greeks.live/area/gfxc-global-code/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) of Conduct (the Code) serves as a set of principles designed to overlay a framework of good practice onto the FX market, rather than as a prescriptive rulebook. Its approach to [last look](https://prime.greeks.live/area/last-look/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is a clear example of this philosophy. The Code does not prohibit the practice. Instead, it establishes clear boundaries for its use, focusing on transparency and fairness.

Principle 17 of the Code is the cornerstone of this framework, stipulating that if [market participants](https://prime.greeks.live/question/how-does-a-ccps-default-waterfall-protect-market-participants/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) employ last look, they must be transparent about its application and provide comprehensive disclosures to their clients. This shifts the conversation from whether last look should exist to how it should be responsibly implemented. The GFXC’s guidance emphasizes that the [last look window](https://prime.greeks.live/area/last-look-window/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is intended solely for price and validity checks, preventing its misuse for other purposes, such as information gathering or leveraging client trade information for the LP’s own trading activities.

> The GFXC Global Code addresses last look by permitting its use as a risk control mechanism while mandating strict transparency and fairness from liquidity providers.

![A luminous, miniature Earth sphere rests precariously on textured, dark electronic infrastructure with subtle moisture. This visualizes institutional digital asset derivatives trading, highlighting high-fidelity execution within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/global-digital-asset-derivatives-rfq-protocol-execution-engine-underpinning-institutional-market-microstructure-with-precision.jpg)

## The Anatomy of a Last Look Trade

Understanding the mechanics of a last look trade is essential to appreciating the nuances of the GFXC’s guidance. The process unfolds in a series of distinct steps:

- **Quotation** ▴ A liquidity provider streams a two-way (bid/ask) price to a [liquidity consumer](https://prime.greeks.live/area/liquidity-consumer/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), such as an asset manager or corporate treasurer.

- **Trade Request** ▴ The liquidity consumer decides to execute a trade at the quoted price and sends a request to the LP.

- **Last Look Window** ▴ This is the critical phase. Upon receiving the trade request, the LP initiates a brief pause ▴ the last look window. During this interval, the LP performs two primary checks:

<li>**Price Check** ▴ The LP verifies if the market price has moved against them beyond a pre-determined tolerance level since the initial quote was provided.

- **Validity Check** ▴ The LP ensures the trade request is still valid and within the agreed-upon trading parameters.

</li>
- **Acceptance or Rejection** ▴ Based on the outcome of the checks, the LP makes a final decision. If the price is still valid and within the tolerance, the trade is accepted. If the price has moved unfavorably or if there’s a validity issue, the trade is rejected.

![Precision-engineered multi-vane system with opaque, reflective, and translucent teal blades. This visualizes Institutional Grade Digital Asset Derivatives Market Microstructure, driving High-Fidelity Execution via RFQ protocols, optimizing Liquidity Pool aggregation, and Multi-Leg Spread management on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-multi-vane-system-illustrating-institutional-digital-asset-derivatives-rfq-protocols-market-microstructure-optimized-liquidity-aggregation-prime-os-high-fidelity-execution.jpg)

## Principle 17 the Foundation of Fair Practice

[Principle 17](https://prime.greeks.live/area/principle-17/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) of the FX Global Code is the central pillar governing last look. Its language is precise, establishing a clear standard for market participants. The principle states that those employing last look must be transparent about its use and provide appropriate disclosures. This transparency is not a passive requirement; it necessitates active communication with clients about how the last look process functions, including the factors that might lead to a rejection.

The GFXC has reinforced this by encouraging [liquidity providers](https://prime.greeks.live/question/what-role-do-non-bank-liquidity-providers-play-in-offering-deep-liquidity/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to complete a Disclosure Cover Sheet, providing standardized information on their last look practices. This initiative aims to create a more level playing field, allowing [liquidity consumers](https://prime.greeks.live/question/how-can-liquidity-consumers-use-rejection-data-to-quantitatively-evaluate-and-compare-their-liquidity-providers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to make more informed decisions when selecting their counterparties.

![A segmented teal and blue institutional digital asset derivatives platform reveals its core market microstructure. Internal layers expose sophisticated algorithmic execution engines, high-fidelity liquidity aggregation, and real-time risk management protocols, integral to a Prime RFQ supporting Bitcoin options and Ethereum futures trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-core-microstructure.jpg)

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## Strategy

The GFXC Global Code’s approach to last look is a strategic balancing act. It acknowledges the legitimate risk management function of the practice for liquidity providers while addressing the potential for unfair treatment of liquidity consumers. The overarching strategy is to foster a market environment where last look, if used, is a predictable and transparent risk control, not a tool for discretionary advantage.

This is achieved through a multi-pronged approach that emphasizes enhanced disclosures, fair and effective processes, and the availability of data for evaluation. By focusing on these areas, the GFXC aims to mitigate the information asymmetry that has historically been a major point of contention in the FX market.

A key element of the GFXC’s strategy is the promotion of ex-ante disclosures. This means that liquidity providers are strongly encouraged to provide clear and detailed information about their last look practices before they engage in trading with a client. This information should cover the methodologies used for price checks, the length of the last look window, and the circumstances under which a trade might be rejected.

Armed with this information, liquidity consumers can more effectively assess the quality of the liquidity they are being offered and compare different providers on a like-for-like basis. This shifts the dynamic from a purely price-based decision to a more holistic assessment of execution quality and counterparty risk.

![A futuristic apparatus visualizes high-fidelity execution for digital asset derivatives. A transparent sphere represents a private quotation or block trade, balanced on a teal Principal's operational framework, signifying capital efficiency within an RFQ protocol](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-via-prime-os.jpg)

## Comparative Analysis of Last Look Approaches

The GFXC’s principles-based framework allows for some variation in how last look is implemented. The table below outlines different potential approaches and how they align with the Code’s strategic objectives:

| Approach | Description | Alignment with GFXC Code |
| --- | --- | --- |
| Zero Hold Time | The liquidity provider forgoes the last look window entirely, accepting all trades at the quoted price. | Fully consistent. This approach eliminates the potential for last look-related conflicts. |
| Asymmetric Slippage | The liquidity provider rejects trades if the price moves against them but keeps the profit if the price moves in their favor. | Inconsistent. This practice is generally considered unfair and is not aligned with the Code’s principles of transparency and fairness. |
| Symmetric Slippage | The liquidity provider adjusts the trade price to reflect any market movement, whether it is in their favor or the client’s. | Potentially consistent, provided it is fully disclosed and agreed upon by both parties. Transparency is paramount. |
| Pre-hedging during Last Look | The liquidity provider initiates a hedge based on the client’s trade request during the last look window. | Inconsistent. The GFXC has explicitly stated that trading activity that utilizes information from a client’s trade request during the last look window is likely inconsistent with good market practice. |

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## The Strategic Importance of Data and Analytics

A cornerstone of the GFXC’s strategy is empowering liquidity consumers with the information they need to evaluate the execution they receive. This goes beyond pre-trade disclosures to include post-trade data and analytics. Liquidity providers are encouraged to make information available that allows clients to regularly evaluate the handling of their trade requests. This can include data on rejection rates, the reasons for rejections, and the latency of the last look window.

By analyzing this data, liquidity consumers can identify patterns and trends that may indicate unfair or inconsistent application of last look. This data-driven approach is critical for ensuring that the principles of the Code are not just words on a page, but are actively being put into practice.

> The GFXC’s strategic framework for last look is designed to shift the FX market towards a more transparent and equitable model of execution.

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## Execution

For market participants, adhering to the GFXC’s principles on last look requires a robust operational framework. This framework must encompass not only the technological aspects of trade execution but also the governance, compliance, and communication processes that surround it. The execution of a compliant last look strategy is a detailed and multi-faceted endeavor, requiring a commitment to transparency and a systematic approach to risk management. The GFXC’s guidance paper on last look provides a clear roadmap for market participants, outlining three key recommendations ▴ ensuring a fair and effective last look process, enhancing ex-ante disclosures, and ensuring information is available to regularly evaluate the handling of trade requests. 

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## Building a Compliant Last Look Framework

A compliant last look framework is built on a foundation of clear policies, effective controls, and transparent communication. The following is a detailed breakdown of the key components:

- **Governance and Oversight** ▴ Market participants should establish a clear governance structure for their last look practices. This includes defining the roles and responsibilities of individuals involved in the process, as well as establishing an oversight function to ensure compliance with the firm’s policies and the GFXC Code.

- **Policy and Procedure Documentation** ▴ Firms must maintain detailed documentation of their last look policies and procedures. This documentation should cover all aspects of the process, including the methodology for price and validity checks, the length of the last look window, and the criteria for accepting or rejecting trades.

- **System Controls** ▴ The trading systems used to implement last look should be designed to ensure that the process is applied fairly and consistently. This includes controls to prevent the misuse of client information and to ensure that the last look window is of a reasonable and predictable duration.

- **Disclosure and Transparency** ▴ As emphasized by the GFXC, transparency is paramount. Market participants must provide clients with clear and comprehensive disclosures about their last look practices. This can be achieved through the use of the GFXC’s Disclosure Cover Sheet and by providing detailed information on their websites or directly to clients.

- **Monitoring and Surveillance** ▴ Firms should have a program in place to monitor their last look practices and to detect any potential violations of their policies or the GFXC Code. This can include regular reviews of trade data, rejection rates, and other relevant metrics.

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## Quantitative Analysis of Last Look Impact

The impact of different last look practices can be quantified through [transaction cost analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA). The table below provides a hypothetical example of how TCA can be used to compare the execution quality of two different liquidity providers.

| Metric | Liquidity Provider A | Liquidity Provider B | Analysis |
| --- | --- | --- | --- |
| Total Orders | 10,000 | 10,000 | The total number of trade requests sent to each provider. |
| Fill Rate | 95% | 85% | Provider A has a significantly higher fill rate, indicating a lower rejection rate. |
| Average Hold Time (ms) | 10 | 50 | Provider B has a much longer hold time, which could expose the client to greater market risk. |
| Rejection Slippage (pips) | -0.1 | -0.5 | The average market movement on rejected trades. Provider B appears to be rejecting trades with more significant adverse price movements. |
| Post-Trade Price Improvement (pips) | 0.05 | -0.02 | The average price movement after a trade is filled. Provider A shows some positive price improvement, while Provider B shows negative improvement. |

> Effective execution under the GFXC Global Code requires a deeply integrated approach to technology, governance, and data analysis.

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## References

- Global Foreign Exchange Committee. “FX Global Code.” 2021.

- Global Foreign Exchange Committee. “GFXC Guidance Paper on Last Look.” 2021.

- Global Foreign Exchange Committee. “Execution Principles Working Group Report on Last Look.” 2021.

- Moore, R. & Rozen, A. “The FX Global Code ▴ A new framework for the foreign exchange market.” Bank of Canada Review, 2017.

- Rime, D. & Schrimpf, A. “The anatomy of the global foreign exchange market.” BIS Quarterly Review, 2013.

- Financial Stability Board. “Foreign Exchange Benchmarks ▴ Final Report.” 2014.

- Bank for International Settlements. “Triennial Central Bank Survey of Foreign Exchange and Over-the-counter (OTC) Derivatives Markets in 2022.” 2022.

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## Reflection

The GFXC Global Code’s treatment of last look is a testament to the evolution of the FX market. It represents a move away from opaque, relationship-based trading towards a more transparent, data-driven model. For institutional market participants, this shift presents both challenges and opportunities. The challenge lies in developing the internal capabilities to navigate this new landscape, from implementing robust compliance frameworks to leveraging sophisticated data analytics.

The opportunity lies in the potential for improved execution quality, reduced transaction costs, and a more level playing field. The Code provides the map, but it is up to each market participant to build the vessel capable of making the journey.

![An abstract composition of intersecting light planes and translucent optical elements illustrates the precision of institutional digital asset derivatives trading. It visualizes RFQ protocol dynamics, market microstructure, and the intelligence layer within a Principal OS for optimal capital efficiency, atomic settlement, and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-framework.jpg)

## Glossary

<a href="https://prime.greeks.live/area/liquidity-provider/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Liquidity Provider

Meaning ▴ A Liquidity Provider is an entity, typically an institutional firm or professional trading desk, that actively facilitates market efficiency by continuously quoting two-sided prices, both bid and ask, for financial instruments. </a><a href="https://prime.greeks.live/area/electronic-trading/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precisely engineered central blue hub anchors segmented grey and blue components, symbolizing a robust Prime RFQ for institutional trading of digital asset derivatives. This structure represents a sophisticated RFQ protocol engine, optimizing liquidity pool aggregation and price discovery through advanced market microstructure for high-fidelity execution and private quotation](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-digital-asset-derivatives-rfq-execution-core-systemic-hub.jpg)

## Electronic Trading

Meaning ▴ Electronic Trading refers to the execution of financial instrument transactions through automated, computer-based systems and networks, bypassing traditional manual methods. </a><a href="https://prime.greeks.live/question/in-what-specific-scenarios-should-a-request-for-quotation-be-used-instead-of-a-request-for-proposal/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A translucent blue sphere is precisely centered within beige, dark, and teal channels. This depicts RFQ protocol for digital asset derivatives, enabling high-fidelity execution of a block trade within a controlled market microstructure, ensuring atomic settlement and price discovery on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/precision-execution-pathway-for-institutional-digital-asset-derivatives-leveraging-rfq-protocols-and-high-fidelity-market-microstructure.jpg)

## Trade Request

An RFQ is a procurement protocol used for price discovery on known requirements; an RFP is for solution discovery on complex problems. </a><a href="https://prime.greeks.live/area/gfxc-global-code/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intersecting teal and dark blue planes, with reflective metallic lines, depict structured pathways for institutional digital asset derivatives trading. This symbolizes high-fidelity execution, RFQ protocol orchestration, and multi-venue liquidity aggregation within a Prime RFQ, reflecting precise market microstructure and optimal price discovery](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-rfq-execution-liquidity-microstructure.jpg)

## Gfxc Global Code

Meaning ▴ The GFXC Global Code represents a comprehensive set of global principles for good practice in the wholesale foreign exchange market. </a><a href="https://prime.greeks.live/area/last-look/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract geometric forms, symbolizing bilateral quotation and multi-leg spread components, precisely interact with robust institutional-grade infrastructure. This represents a Crypto Derivatives OS facilitating high-fidelity execution via an RFQ workflow, optimizing capital efficiency and price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-infrastructure.jpg)

## Last Look

Meaning ▴ Last Look refers to a specific latency window afforded to a liquidity provider, typically in electronic over-the-counter markets, enabling a final review of an incoming client order against real-time market conditions before committing to execution. </a><a href="https://prime.greeks.live/question/how-does-a-ccps-default-waterfall-protect-market-participants/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, institutional grade sphere features a luminous circular display showcasing a stylized Earth, symbolizing global liquidity aggregation. This advanced Prime RFQ interface enables real-time market microstructure analysis and high-fidelity execution for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-trading-platform-displaying-global-liquidity-aggregation-and-real-time-price-discovery-for-rfq-protocols.jpg)

## Market Participants

A CCP's default waterfall is a sequential, multi-layered financial defense system that absorbs a member's failure to protect the market. </a><a href="https://prime.greeks.live/area/last-look-window/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision instruments, resembling calibration tools, intersect over a central geared mechanism. This metaphor illustrates the intricate market microstructure and price discovery for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-engine-microstructure-analytics.jpg)

## Last Look Window

Meaning ▴ The Last Look Window defines a finite temporal interval granted to a liquidity provider following the receipt of an institutional client's firm execution request, allowing for a final re-evaluation of market conditions and internal inventory before trade confirmation. </a><a href="https://prime.greeks.live/area/liquidity-consumer/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A scratched blue sphere, representing market microstructure and liquidity pool for digital asset derivatives, encases a smooth teal sphere, symbolizing a private quotation via RFQ protocol. An institutional-grade structure suggests a Prime RFQ facilitating high-fidelity execution and managing counterparty risk](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocols-optimizing-digital-asset-derivative-execution-microstructure.jpg)

## Liquidity Consumer

Meaning ▴ A liquidity consumer is an order type or execution algorithm designed to immediately execute against existing liquidity on an order book, thereby removing resting orders and consuming available depth. </a><a href="https://prime.greeks.live/area/principle-17/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A multi-faceted algorithmic execution engine, reflective with teal components, navigates a cratered market microstructure. It embodies a Principal's operational framework for high-fidelity execution of digital asset derivatives, optimizing capital efficiency, best execution via RFQ protocols in a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/advanced-rfq-protocol-engine-for-institutional-digital-asset-derivatives.jpg)

## Principle 17

Meaning ▴ Principle 17 establishes the operational mandate for dynamic, pre-trade liquidity aggregation across disparate digital asset derivatives venues. </a><a href="https://prime.greeks.live/question/what-role-do-non-bank-liquidity-providers-play-in-offering-deep-liquidity/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intersecting abstract geometric planes depict institutional grade RFQ protocols and market microstructure. Speckled surfaces reflect complex order book dynamics and implied volatility, while smooth planes represent high-fidelity execution channels and private quotation systems for digital asset derivatives within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocols-digital-asset-microstructure-execution.jpg)

## Liquidity Providers

Non-bank liquidity providers function as specialized processing units in the market's architecture, offering deep, automated liquidity. </a><a href="https://prime.greeks.live/question/how-can-liquidity-consumers-use-rejection-data-to-quantitatively-evaluate-and-compare-their-liquidity-providers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![The image displays a sleek, intersecting mechanism atop a foundational blue sphere. It represents the intricate market microstructure of institutional digital asset derivatives trading, facilitating RFQ protocols for block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-execution.jpg)

## Liquidity Consumers

Rejection data analysis provides the quantitative framework to systematically measure and compare liquidity provider reliability and risk appetite. </a><a href="https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark, reflective surface showcases a metallic bar, symbolizing market microstructure and RFQ protocol precision for block trade execution. A clear sphere, representing atomic settlement or implied volatility, rests upon it, set against a teal liquidity pool](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-4.jpg)

## Transaction Cost Analysis

Meaning ▴ Transaction Cost Analysis (TCA) is the quantitative methodology for assessing the explicit and implicit costs incurred during the execution of financial trades. </a>

**Tags:** [Algorithmic Trading](https://options.greeks.live/area/algorithmic-trading/), [Market Microstructure](https://options.greeks.live/area/market-microstructure/), [Last Look](https://options.greeks.live/area/last-look/), [Liquidity Provider](https://options.greeks.live/area/liquidity-provider/), [Best Execution](https://options.greeks.live/area/best-execution/), [GFXC Global Code](https://options.greeks.live/area/gfxc-global-code/)	

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- 
### [How Can Tca Data from a Hybrid Rfq Be Used to Strategically Manage Liquidity Provider Relationships?](https://options.greeks.live/question/how-can-tca-data-from-a-hybrid-rfq-be-used-to-strategically-manage-liquidity-provider-relationships/)
![A precision institutional interface features a vertical display, control knobs, and a sharp element. This RFQ Protocol system ensures High-Fidelity Execution and optimal Price Discovery, facilitating Liquidity Aggregation. It's a vital component of a Principal's Operational Framework for Digital Asset Derivatives, optimizing Market Microstructure for Atomic Settlement.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-platform-interface.jpg)

TCA data from hybrid RFQs enables the strategic calibration of liquidity provider relationships through quantitative performance analysis.

- 
### [What Are the Regulatory Perspectives on the Use of Last Look in Fx Markets?](https://options.greeks.live/question/what-are-the-regulatory-perspectives-on-the-use-of-last-look-in-fx-markets/)
![Internal, precise metallic and transparent components are illuminated by a teal glow. This visual metaphor represents the sophisticated market microstructure and high-fidelity execution of RFQ protocols for institutional digital asset derivatives. It reflects a principal's operational framework, ensuring atomic settlement and optimal price discovery through an intelligence layer.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-microstructure-prime-os-intelligence-layer-atomic-settlement-precision.jpg)

The regulatory view frames FX last look as a transparent risk control, not an informational tool for trading advantage.

- 
### [How Can Transaction Cost Analysis Quantify the Hidden Costs of Last Look?](https://options.greeks.live/question/how-can-transaction-cost-analysis-quantify-the-hidden-costs-of-last-look/)
![A proprietary Prime RFQ platform featuring extending blue/teal components, representing a multi-leg options strategy or complex RFQ spread. The labeled band 'F331 46 1' denotes a specific strike price or option series within an aggregated inquiry for high-fidelity execution, showcasing granular market microstructure data points.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-protocol-1.jpg)

TCA quantifies Last Look's hidden costs by modeling rejection slippage, information leakage, and the dealer's free option to reveal systemic execution frictions.

- 
### [From a Regulatory Perspective Is Last Look Considered a Fair Practice in Financial Markets?](https://options.greeks.live/question/from-a-regulatory-perspective-is-last-look-considered-a-fair-practice-in-financial-markets/)
![A sleek, metallic control mechanism with a luminous teal-accented sphere symbolizes high-fidelity execution within institutional digital asset derivatives trading. Its robust design represents Prime RFQ infrastructure enabling RFQ protocols for optimal price discovery, liquidity aggregation, and low-latency connectivity in algorithmic trading environments.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-control-for-optimal-market-microstructure-precision.jpg)

From a regulatory viewpoint, last look is a permissible risk control if applied fairly and transparently; otherwise, it is an unfair practice.

- 
### [What Is the Relationship between Last Look Hold Time and Market Volatility?](https://options.greeks.live/question/what-is-the-relationship-between-last-look-hold-time-and-market-volatility/)
![A precision metallic dial on a multi-layered interface embodies an institutional RFQ engine. The translucent panel suggests an intelligence layer for real-time price discovery and high-fidelity execution of digital asset derivatives, optimizing capital efficiency for block trades within complex market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-high-fidelity-execution-system.jpg)

Last look hold time is a risk-control optionality whose value and impact are directly amplified by market volatility.

- 
### [What Role Does Transaction Cost Analysis Play in Refining Quote Expiration Models?](https://options.greeks.live/question/what-role-does-transaction-cost-analysis-play-in-refining-quote-expiration-models/)
![A central precision-engineered RFQ engine orchestrates high-fidelity execution across interconnected market microstructure. This Prime RFQ node facilitates multi-leg spread pricing and liquidity aggregation for institutional digital asset derivatives, minimizing slippage.](https://options.greeks.live/wp-content/uploads/2025/08/high-fidelity-rfq-execution-for-institutional-crypto-derivatives.jpg)

TCA provides the empirical data to evolve quote expiration from static rules to a dynamic, risk-aware system that mitigates adverse selection.

- 
### [How Has the FX Global Code Changed the Strategic Use of Last Look?](https://options.greeks.live/question/how-has-the-fx-global-code-changed-the-strategic-use-of-last-look/)
![Precision-engineered modular components, with transparent elements and metallic conduits, depict a robust RFQ Protocol engine. This architecture facilitates high-fidelity execution for institutional digital asset derivatives, enabling efficient liquidity aggregation and atomic settlement within market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-optimizing-high-fidelity-execution-and-liquidity-aggregation.jpg)

The FX Global Code has systemically transitioned last look from an opaque, discretionary practice to a transparent, auditable risk management protocol.

- 
### [What Are the Differences between RFQ Leakage in Equity versus FX Markets?](https://options.greeks.live/question/what-are-the-differences-between-rfq-leakage-in-equity-versus-fx-markets/)
![A layered, cream and dark blue structure with a transparent angular screen. This abstract visual embodies an institutional-grade Prime RFQ for high-fidelity RFQ execution, enabling deep liquidity aggregation and real-time risk management for digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-layered-structure-for-institutional-digital-asset-rfq-execution.jpg)

RFQ leakage differs by market structure; in equities, it's high-speed data risk, while in FX, it's dealer behavior risk.

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---

**Original URL:** https://options.greeks.live/question/how-do-regulatory-frameworks-like-the-gfxc-global-code-address-last-look-practices/
