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Hi what does “last look” rule/functionality mean in trading? I came across this

(Last Updated On: August 15, 2011)

Hi what does “last look” rule/functionality mean in trading? I came across this
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Last look is where the FX dealer who is providing you with the price gets a change to review your order before he/she accepts it. They could re-quote you another price.
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There may be other meanings, but…In RFQ-based trading, it’s where a trader (usually retail) gets a chance to equal or better the market when an indicative price is hit.
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“Last look” refers to the feature on many platforms in which the party that is making markets gets a chance to reject a trade if it doesn’t want it. Generally, the market maker has a couple hundred milliseconds to reject, or the fill is good. It’s a lamentable practice that has its origins in the early days of e-Trading, when bank technology was so much slower than on the buy-side (institutional prop trading), that this had to be added so that banks wouldn’t get creamed so badly. Even though banks have mostly improved their infrastructure, they became addicted to having last look at trades, so the practice persists. It’s utterly bogus, but there it is. A number of major platforms still support it. Now, it is becoming available to buy-side market makers as well.

thanks! thats very clear explanation!

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