Effex used last look tactics to cheat FXCM clients, NFA states

NFA names Effex Capital as FXCM's preferential market-maker, which used 'hold timer' and 'previous quote' practices

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The damage caused by abusing last look has become glaringly obvious to FXCM clients

Effex Capital, the market-maker named as FXCM's de facto proprietary trading desk, has used preferential access to the order book and abusive last look practices to profit from retail customer orders directed to the liquidity provider by FXCM, according to a complaint filed by the National Futures Association (NFA).

The case, which, together with enforcement action from the Commodity Futures Trading Commission (CFTC), has resulted in FXCM and two of its founders being banned from operating in th