Basically, it allows the liquidity provider, albeit for a very brief moment, to assess the market and decide whether to accept or reject a trade, even after the investment manager has requested the transaction.
For what seems like an eternity now, the controversy surrounding “last look” has hung over the FX industry like a dark cloud.
The practice involves a liquidity provider, like an investment bank or market-maker, rejecting or requoting a trade after receiving the order from a client, but crucially before executing it.
