# How Does the Global FX Code Influence the Use of Last Look Liquidity? ▴ Question

**Published:** 2025-08-02
**Categories:** Question

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## Concept

The institutional [foreign exchange market](https://prime.greeks.live/area/foreign-exchange-market/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) operates not as a single, monolithic exchange, but as a fragmented network of interconnected liquidity pools. Within this decentralized architecture, the practice of ‘last look’ emerged as a defense mechanism for [liquidity providers](https://prime.greeks.live/area/liquidity-providers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (LPs). It is a final, discretionary window ▴ measured in milliseconds ▴ where an LP who has provided a quote can reject a trade request initiated by a liquidity consumer (LC) before execution.

At its core, this practice is a response to the inherent risks of latency arbitrage in a market where price information travels at finite speeds across different venues. An LP’s quoted price can become stale in the time it takes for an LC’s order to arrive, exposing the LP to being systematically picked off by faster participants.

However, this protective mechanism introduces a fundamental asymmetry of power and information. The LP is granted a free option ▴ the ability to renege on a quoted price if the market moves against them within the [last look window](https://prime.greeks.live/area/last-look-window/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), while accepting the trade if the market moves in their favor. This optionality, if left unchecked, creates significant execution uncertainty for the liquidity consumer and opens the door to practices that undermine market integrity.

The core tension of [last look](https://prime.greeks.live/area/last-look/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is this conflict between legitimate risk mitigation for the provider and the potential for unfair execution for the consumer. It is a structural feature born of necessity in a high-speed, electronic market, yet one that carries intrinsic potential for misuse.

The [FX Global Code](https://prime.greeks.live/area/fx-global-code/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), therefore, does not function as a prohibitive regulation that bans this practice. Instead, it acts as a critical protocol update for the market’s operating system. The Code’s intervention, particularly through Principle 17, is designed to recalibrate this asymmetry. It reframes last look from a discretionary tool that could be used for profit generation into a transparent and auditable [risk control mechanism](https://prime.greeks.live/area/risk-control-mechanism/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

The Code’s influence is not to eliminate the function but to standardize its application, demanding that its use be disclosed, justified, and consistently applied. It forces LPs to define the parameters of their risk controls and to be accountable for their execution practices, thereby providing LCs with the necessary information to evaluate the quality of the liquidity they are accessing. This shifts the paradigm from an opaque system based on trust to a transparent one based on verifiable data.

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## Strategy

The FX Global Code fundamentally alters the strategic landscape of last look by imposing a framework of transparency and accountability. This compels both liquidity providers and consumers to adopt more sophisticated strategies for pricing, execution, and analysis. The Code’s principles transform last look from a simple, often opaque, trading practice into a measurable component of [execution quality](https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

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## Principle 17 as a Governance Mandate

[Principle 17](https://prime.greeks.live/area/principle-17/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) of the Code is the lynchpin of this strategic shift. It explicitly states that last look, if utilized, should be a risk control mechanism to verify validity and price. This single statement redefines the strategic purpose of the practice. It delegitimizes the use of last look as an opportunistic tool to enhance profits by rejecting trades that have become unfavorable due to market movements that the LP simply wishes to avoid.

The strategic imperative for LPs becomes one of defining and documenting a clear and consistent risk management policy. This policy must detail the specific conditions under which a trade will be rejected, such as a [price check](https://prime.greeks.live/area/price-check/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) failure against a verifiable current market price or a credit limit breach. For liquidity consumers, the strategy becomes one of due diligence. They must now actively request and scrutinize the disclosure documents of their LPs to understand the rules of engagement. The focus shifts from simply seeking the tightest spread to evaluating the certainty and fairness of execution.

> The FX Global Code reframes last look as a transparent risk control, not a discretionary profit tool.

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## The Strategic Power of Disclosure

The Code’s emphasis on disclosure is the primary mechanism for enforcing its principles. LPs are expected to provide clear and comprehensive information about their last look practices. This includes the length of the last look window, the methodology used for the price check, and how information from rejected trades is handled. This transparency provides LCs with the data needed to conduct meaningful [Transaction Cost Analysis](https://prime.greeks.live/area/transaction-cost-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCA).

The strategic advantage this confers upon the LC is significant. An LC can now compare LPs not just on their quoted prices, but on the quality of their execution. An LP that offers a tight spread but has a high [rejection rate](https://prime.greeks.live/area/rejection-rate/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) or long [hold times](https://prime.greeks.live/area/hold-times/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) during volatile periods may be providing lower quality liquidity than an LP with a slightly wider spread but a higher fill ratio and more consistent execution. This data-driven approach allows LCs to build a more resilient and predictable execution framework.

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## Transaction Cost Analysis the Enforcement Mechanism

TCA evolves from a post-trade reporting tool into a strategic weapon for liquidity consumers to enforce the standards of the Global FX Code. By analyzing execution data, LCs can identify LPs whose practices deviate from their disclosed policies or from market norms. The analysis moves beyond simple slippage calculations to encompass a broader set of metrics designed to reveal the true cost of last look. This strategic use of TCA creates a feedback loop that incentivizes LPs to improve their practices.

LPs who are consistently flagged for high [rejection rates](https://prime.greeks.live/area/rejection-rates/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) or excessive hold times will face pressure from clients and may lose order flow. This competitive pressure drives the market towards greater fairness and efficiency.

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## Table of Pre and Post Code Tca Metrics

The following table illustrates how the strategic focus of TCA has evolved in response to the Global FX Code’s influence on last look.

### Evolution of TCA Metrics for Last Look Analysis

| Metric | Pre-Code TCA Focus | Post-Code TCA Focus |
| --- | --- | --- |
| Spread | Primary focus was on the quoted bid-offer spread as the main indicator of cost. | Quoted spread is considered alongside effective spread, which accounts for rejected trades. |
| Rejection Rate | Often viewed as a simple operational metric or a cost of doing business. | Analyzed in detail as a key indicator of liquidity quality and LP behavior. High rates are a red flag. |
| Hold Time | Largely ignored unless excessively long, and rarely measured consistently. | Measured in milliseconds and analyzed for consistency. Longer hold times give the LP a greater free option. |
| Post-Rejection Slippage | Not systematically measured. The cost of being rejected was difficult to quantify. | A critical metric. It measures the market movement between the rejection and when the LC can re-execute, quantifying the cost of the rejection. |

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## How Does the Code Impact Liquidity Provisioning Strategies?

For LPs, the strategy must now pivot from maximizing the value of the last look option to competing on the quality and transparency of their execution. This leads to a tiering of liquidity. Top-tier LPs will differentiate themselves by offering firm or near-firm pricing with minimal or no last look. Other LPs will compete by providing highly transparent last look processes with short, consistent hold times and low rejection rates.

They will use their disclosures and TCA data as marketing tools to attract sophisticated clients. The Code effectively forces LPs to invest in their technology and risk management systems to provide a better, more predictable execution experience. Those who cling to opaque or aggressive last look strategies will find their market share diminishing as LCs become more adept at identifying and penalizing poor practices.

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## Execution

The execution of trading strategies under the FX Global Code requires a granular understanding of the operational changes it imposes on the last look practice. For both liquidity providers and consumers, this means implementing specific procedures, utilizing new data points, and adapting technological infrastructures to meet the Code’s standards of transparency and fairness.

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## The Mechanics of Code Compliant Disclosure

Executing a Code-compliant strategy begins with the LP’s disclosure. This is not a mere formality but a foundational document that governs the trading relationship. A compliant disclosure must be detailed and unambiguous, providing the LC with a clear operational playbook for how their orders will be handled.

The execution for LCs involves systematically collecting, storing, and comparing these disclosures from all their liquidity providers. This creates an internal database that can be used to inform routing decisions and to verify that LP behavior aligns with their stated policies.

- **[Hold Time](https://prime.greeks.live/area/hold-time/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Definition** ▴ The disclosure must specify the duration of the last look window. Best practice, as encouraged by the Code, is to keep this period as short as technologically practicable to minimize the LP’s optionality.

- **Price Check Methodology** ▴ The LP must explain how it determines the ‘current price’ against which the client’s requested price is checked. This includes the sources of price data used for the check and the tolerance level for price movements.

- **Handling of Trade Information** ▴ The policy must state that information from a client’s [trade request](https://prime.greeks.live/question/what-are-the-core-differences-between-a-request-for-quote-and-a-request-for-market/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) will not be used for the LP’s own trading activities. This is a critical provision to prevent information leakage and the misuse of client data.

- **Rejection Rationales** ▴ LPs should be able to provide clear reasons for rejected trades. This allows LCs to distinguish between rejections due to price movements, credit issues, or other validity checks.

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## A Process Flow of a Code Compliant Last Look

The operational flow of a trade request subject to a Code-compliant last look is distinct from older, less transparent models. The key difference lies in the defined, consistent, and auditable nature of the process. Below is a step-by-step comparison of a compliant versus a non-compliant process.

- **Trade Request** ▴ The LC sends a request to trade at the LP’s quoted price. This step is common to both processes.

- **Last Look Window (Compliant)** ▴ The LP receives the request and initiates a pre-disclosed, fixed-duration hold time (e.g. 10-20 milliseconds). A series of automated, pre-defined risk checks are performed ▴ price check against a verifiable mid-market rate and a credit check.

- **Last Look Window (Non-Compliant)** ▴ The LP holds the request for a variable and undisclosed period. The decision to fill or reject may be subject to discretionary human intervention or based on whether the trade is immediately profitable. The client’s information may be used to inform the LP’s own trading decisions during the window.

- **Decision (Compliant)** ▴ If the price check and credit check are passed, the trade is filled. If not, it is rejected. The decision is binary and based on the pre-defined logic.

- **Post-Trade (Compliant)** ▴ If rejected, the LC receives a rejection message, ideally with a reason code. The LC’s TCA system logs the rejection and calculates the cost of re-executing the trade in the market. The LP does not use the information from the rejected trade.

- **Post-Trade (Non-Compliant)** ▴ If rejected, the LC simply sees a rejected trade. There is no clear reason provided. The LP may have already traded on the information, potentially moving the market against the LC before they can re-trade.

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## Quantitative Analysis of Execution Quality

The ultimate test of the Code’s influence is in the data. A sophisticated LC will maintain detailed TCA reports to monitor their LPs’ performance. The table below provides a simulated example of such a report, highlighting the key metrics that reveal the quality of last look execution. An LC would use this data to reward high-performing LPs with more order flow and to engage in corrective discussions with underperformers.

> Verifiable data from Transaction Cost Analysis is the ultimate arbiter of an LP’s adherence to the Code’s principles.

### Simulated Monthly LP Execution Quality Report

| Liquidity Provider | Total Volume (USD Mio) | Rejection Rate (%) | Avg. Hold Time (ms) | Post-Rejection Slippage (bps) | Performance Tier |
| --- | --- | --- | --- | --- | --- |
| LP Alpha | 1,500 | 1.5% | 12 | 0.10 | Tier 1 |
| LP Beta | 2,000 | 8.2% | 45 | 0.45 | Tier 3 |
| LP Gamma | 1,200 | 3.0% | 25 | 0.25 | Tier 2 |
| LP Delta (No Last Look) | 800 | 0.0% | N/A | N/A | Firm |

In this simulation, LP Alpha demonstrates excellent performance with low rejection rates and minimal post-rejection slippage, indicating a fair and efficient last look process. In contrast, LP Beta shows signs of problematic execution, with high rejection rates and significant slippage, suggesting their last look window is being used to their advantage at the client’s expense. LP Delta, by offering firm liquidity, provides a baseline for comparison. A strategic LC would shift volume from LP Beta to LP Alpha and LP Delta.

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## What Are the System Integration Requirements?

The execution of this data-driven oversight requires technological adaptation. LCs need robust execution management systems (EMS) capable of ingesting and analyzing large volumes of trade data. These systems must be able to parse FIX protocol messages to extract not just fill information but also rejection messages and their timestamps.

Increasingly, LCs are demanding that their LPs provide TCA data via APIs, allowing for automated and standardized data collection. This technological integration is the final piece of the puzzle, enabling the seamless execution of a trading strategy that is fully compliant with the principles and spirit of the FX Global Code.

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## References

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

- Bank for International Settlements. “FX Global Code.” _Global Foreign Exchange Committee_, July 2021.

- Cartea, Álvaro, et al. “Foreign Exchange Markets with Last Look.” _Social Science Research Network_, 1 Nov. 2015.

- Norges Bank Investment Management. “The Role of Last Look in Foreign Exchange Markets.” _Asset Manager Perspective_, 17 Dec. 2015.

- Chijioke-Oforji, Chijioke, and Amar Vasani. “Global Foreign Exchange ▴ Cracking the Code.” _Journal of International Banking Law and Regulation_, vol. 32, no. 8, 2017, pp. 358-366.

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## Reflection

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## Evaluating Your Execution Architecture

The FX Global Code’s influence on last look is a clear directive to evolve. It compels every market participant to examine their own operational framework. The principles laid out in the Code are not simply external rules to be followed; they are design specifications for a more robust and equitable market system. The knowledge of how these principles are applied, measured, and enforced is a critical component of a larger system of institutional intelligence.

Consider your own trading protocols. Are they designed merely to find the best-quoted price, or are they architected to secure the best, most reliable execution? How do you currently measure the cost of execution uncertainty?

The answers to these questions reveal the sophistication of your operational framework. The strategic potential lies not just in understanding the Code, but in building an internal system that leverages its principles to create a persistent, data-driven competitive edge.

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## Glossary

<a href="https://prime.greeks.live/area/foreign-exchange-market/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Foreign Exchange Market

Meaning ▴ The Foreign Exchange Market, commonly known as FX or Forex, represents the global decentralized financial market for the exchange of currencies. </a><a href="https://prime.greeks.live/area/liquidity-providers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Robust institutional Prime RFQ core connects to a precise RFQ protocol engine. Multi-leg spread execution blades propel a digital asset derivative target, optimizing price discovery](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-proto-insti-digital-asset-derivs-hi-fi-exec-capital-effi-risk-mgmt.jpg)

## Liquidity Providers

Meaning ▴ Liquidity Providers are market participants, typically institutional entities or sophisticated trading firms, that facilitate efficient market operations by continuously quoting bid and offer prices for financial instruments. </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">
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## 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/last-look/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Central reflective hub with radiating metallic rods and layered translucent blades. This visualizes an RFQ protocol engine, symbolizing the Prime RFQ orchestrating multi-dealer liquidity for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-rfq-execution-and-liquidity-management.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/area/risk-control-mechanism/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A multi-layered, sectioned sphere reveals core institutional digital asset derivatives architecture. Translucent layers depict dynamic RFQ liquidity pools and multi-leg spread execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-market-microstructure-1.jpg)

## Risk Control Mechanism

Meaning ▴ A Risk Control Mechanism constitutes a deterministic, programmatic framework engineered to identify, measure, monitor, and mitigate financial exposure within institutional digital asset derivative operations. </a><a href="https://prime.greeks.live/area/fx-global-code/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Fx Global Code

Meaning ▴ The FX Global Code represents a comprehensive set of global principles of good practice for the wholesale foreign exchange market. </a><a href="https://prime.greeks.live/area/execution-quality/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract structure combines opaque curved components with translucent blue blades, a Prime RFQ for institutional digital asset derivatives. It represents market microstructure optimization, high-fidelity execution of multi-leg spreads via RFQ protocols, ensuring best execution and capital efficiency across liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimizing-market-microstructure-for-high-fidelity-execution-best-execution-price-discovery-across-liquidity-pools-and-prime-os.jpg)

## Execution Quality

Meaning ▴ Execution Quality quantifies the efficacy of an order's fill, assessing how closely the achieved trade price aligns with the prevailing market price at submission, alongside consideration for speed, cost, and market impact. </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">
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## 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/area/price-check/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Price Check

Meaning ▴ A Price Check is a real-time, programmatic query executed against a specified liquidity source or internal pricing engine to ascertain the current executable or indicative price for a given instrument and quantity. </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 central RFQ engine flanked by distinct liquidity pools represents a Principal's operational framework. This abstract system enables high-fidelity execution for digital asset derivatives, optimizing capital efficiency and price discovery within market microstructure for institutional trading](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-engine-optimal-execution-for-digital-asset-derivatives.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><a href="https://prime.greeks.live/area/rejection-rate/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A beige Prime RFQ chassis features a glowing teal transparent panel, symbolizing an Intelligence Layer for high-fidelity execution. A clear tube, representing a private quotation channel, holds a precise instrument for algorithmic trading of digital asset derivatives, ensuring atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-digital-asset-derivatives-high-fidelity-execution-system-interface.jpg)

## Rejection Rate

Meaning ▴ Rejection Rate quantifies the proportion of submitted orders or requests that are declined by a trading venue, an internal matching engine, or a pre-trade risk system, calculated as the ratio of rejected messages to total messages or attempts over a defined period. </a><a href="https://prime.greeks.live/area/hold-times/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A transparent sphere, representing a digital asset option, rests on an aqua geometric RFQ execution venue. This proprietary liquidity pool integrates with an opaque institutional grade infrastructure, depicting high-fidelity execution and atomic settlement within a Principal's operational framework for Crypto Derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-prime-os.jpg)

## Hold Times

Meaning ▴ Hold Times refers to the specified minimum duration an order or a particular order state must persist within a trading system or on an exchange's order book before a subsequent action, such as cancellation or modification, is permitted or a new related order can be submitted. </a><a href="https://prime.greeks.live/area/rejection-rates/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Robust metallic structures, symbolizing institutional grade digital asset derivatives infrastructure, intersect. Transparent blue-green planes represent algorithmic trading and high-fidelity execution for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-microstructure-1.jpg)

## Rejection Rates

Meaning ▴ Rejection Rates quantify the proportion of order messages or trading instructions that a trading system, execution venue, or counterparty declines relative to the total number of submissions within a defined period. </a><a href="https://prime.greeks.live/area/hold-time/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered control mechanism, featuring a ribbed dial and prominent green indicator, signifies Institutional Grade Digital Asset Derivatives RFQ Protocol optimization. This represents High-Fidelity Execution, Price Discovery, and Volatility Surface calibration for Algorithmic Trading](https://options.greeks.live/wp-content/uploads/2025/07/principal-operational-framework-precision-calibration-for-institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-execution-prime-os-and-volatility-surface-optimization.jpg)

## Hold Time

Meaning ▴ Hold Time defines the minimum duration an order must remain active on an exchange's order book. </a><a href="https://prime.greeks.live/question/what-are-the-core-differences-between-a-request-for-quote-and-a-request-for-market/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered teal metallic mechanism, featuring springs and rods, connects to a light U-shaped interface. This represents a core RFQ protocol component enabling automated price discovery and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/rfq-execution-engine-component-for-institutional-digital-asset-derivatives.jpg)

## Trade Request

An RFQ sources discreet, competitive quotes from select dealers, while an RFM engages the continuous, anonymous, public order book. </a>

**Tags:** [Hold Time](https://options.greeks.live/area/hold-time/), [Foreign Exchange Market](https://options.greeks.live/area/foreign-exchange-market/), [Algorithmic Execution](https://options.greeks.live/area/algorithmic-execution/), [Last Look](https://options.greeks.live/area/last-look/), [Liquidity Provider](https://options.greeks.live/area/liquidity-provider/), [Last Look Window](https://options.greeks.live/area/last-look-window/)	

## Discover More

- 
### [How Can an Institution Differentiate between Legitimate Risk Mitigation and Unfair Last Look Behavior?](https://options.greeks.live/question/how-can-an-institution-differentiate-between-legitimate-risk-mitigation-and-unfair-last-look-behavior/)
![Geometric forms with circuit patterns and water droplets symbolize a Principal's Prime RFQ. This visualizes institutional-grade algorithmic trading infrastructure, depicting electronic market microstructure, high-fidelity execution, and real-time price discovery. The central sensor acts as an RFQ gateway for best execution.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-engine-prime-os-microstructure-analytics.jpg)

An institution differentiates these behaviors by analyzing execution data for patterns of asymmetric slippage.

- 
### [How Can TCA Metrics Differentiate between Fair and Predatory Last Look Practices?](https://options.greeks.live/question/how-can-tca-metrics-differentiate-between-fair-and-predatory-last-look-practices/)
![Angularly connected segments portray distinct liquidity pools and RFQ protocols. A speckled grey section highlights granular market microstructure and aggregated inquiry complexities for digital asset derivatives. This visual implies seamless high-fidelity execution and atomic settlement within a Principal's operational framework.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-efficiency.jpg)

TCA differentiates fair from predatory last look by quantifying asymmetries in rejection rates, hold times, and slippage.

- 
### [What Are the Legal and Regulatory Implications of Systematically Quantifying Unfair Last Look Practices?](https://options.greeks.live/question/what-are-the-legal-and-regulatory-implications-of-systematically-quantifying-unfair-last-look-practices/)
![Abstract dual-cone object reflects RFQ Protocol dynamism. It signifies robust Liquidity Aggregation, High-Fidelity Execution, and Principal-to-Principal negotiation. Essential for Crypto Derivatives OS Block Trades, ensuring Atomic Settlement and Volatility Surface integrity.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-rfq-execution-framework-for-digital-asset-derivatives-optimal-liquidity-aggregation-and-atomic-settlement.jpg)

Systematically quantifying unfair last look practices creates the empirical evidence required for legal action and regulatory enforcement.

- 
### [What Are the Regulatory Implications of an Unfair Last Look Practice?](https://options.greeks.live/question/what-are-the-regulatory-implications-of-an-unfair-last-look-practice/)
![Sharp, transparent, teal structures and a golden line intersect a dark void. This symbolizes market microstructure for institutional digital asset derivatives. Angles represent high-fidelity execution via RFQ protocols. Granular specks depict tick data informing price discovery within liquidity pools for alpha generation.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-execution-leveraging-granular-market-microstructure-intelligence.jpg)

The regulatory implications of unfair last look are significant fines, reputational damage, and a mandated shift to transparent systems.

- 
### [What Are the Primary Trade Offs between Firm and Last Look Liquidity?](https://options.greeks.live/question/what-are-the-primary-trade-offs-between-firm-and-last-look-liquidity/)
![A disaggregated institutional-grade digital asset derivatives module, off-white and grey, features a precise brass-ringed aperture. It visualizes an RFQ protocol interface, enabling high-fidelity execution, managing counterparty risk, and optimizing price discovery within market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-modular-execution-intelligence-system.jpg)

The primary trade-off is between the execution certainty of firm liquidity and the potentially tighter pricing of last look liquidity.

- 
### [How Does Last Look Impact the Measurement of Best Execution in Crypto Derivatives?](https://options.greeks.live/question/how-does-last-look-impact-the-measurement-of-best-execution-in-crypto-derivatives/)
![A precise stack of multi-layered circular components visually representing a sophisticated Principal Digital Asset RFQ framework. Each distinct layer signifies a critical component within market microstructure for high-fidelity execution of institutional digital asset derivatives, embodying liquidity aggregation across dark pools, enabling private quotation and atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/principal-digital-asset-rfq-protocol-layers-for-high-fidelity-execution.jpg)

Last look transforms best execution from a price point comparison into a statistical analysis of execution certainty and information cost.

- 
### [What Regulatory Changes Have Been Implemented to Govern the Use of Last Look?](https://options.greeks.live/question/what-regulatory-changes-have-been-implemented-to-govern-the-use-of-last-look/)
![A sophisticated, symmetrical apparatus depicts an institutional-grade RFQ protocol hub for digital asset derivatives, where radiating panels symbolize liquidity aggregation across diverse market makers. Central beams illustrate real-time price discovery and high-fidelity execution of complex multi-leg spreads, ensuring atomic settlement within a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-rfq-protocol-facilitating-atomic-settlement-and-high-fidelity-execution-of-multi-leg-spreads.jpg)

Governing last look has shifted to a principles-based framework demanding transparency and fair application from market makers.

- 
### [What Role Does the Fx Global Code of Conduct Play in Regulating Last Look Practices?](https://options.greeks.live/question/what-role-does-the-fx-global-code-of-conduct-play-in-regulating-last-look-practices/)
![A sophisticated proprietary system module featuring precision-engineered components, symbolizing an institutional-grade Prime RFQ for digital asset derivatives. Its intricate design represents market microstructure analysis, RFQ protocol integration, and high-fidelity execution capabilities, optimizing liquidity aggregation and price discovery for block trades within a multi-leg spread environment.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-proprietary-architecture-driving-high-fidelity-digital-asset-derivatives-execution-via-rfq-protocols-and-optimized-market-microstructure-dynamics.jpg)

The FX Global Code governs last look by mandating transparency and fairness, framing it as a risk control, not a proprietary tool.

- 
### [What Are the Primary Drivers of Rejection Rates in Last Look Liquidity Pools?](https://options.greeks.live/question/what-are-the-primary-drivers-of-rejection-rates-in-last-look-liquidity-pools/)
![Interconnected modular components with luminous teal-blue channels converge diagonally, symbolizing advanced RFQ protocols for institutional digital asset derivatives. This depicts high-fidelity execution, price discovery, and aggregated liquidity across complex market microstructure, emphasizing atomic settlement, capital efficiency, and a robust Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-protocols.jpg)

Rejection rates in last look pools are driven by market volatility, latency, and the specific risk management practices of liquidity providers.

---

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---

**Original URL:** https://options.greeks.live/question/how-does-the-global-fx-code-influence-the-use-of-last-look-liquidity/
