GCC: the ‘likely’ definition of Principle 17

The last look battleground hinges on the wording of the practice

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The question: whether trading activity that uses client request information is likely inconsistent with good market practice

The latest battleground in the last look war is language: whether pre-hedging in the last look window is effectively banned now hinges on the word ‘likely’, even though the latest version of Principle 17, which defines good market practice for last look, does not contain the term.

Until recently, the wording of the paragraph relating to the use of information gleaned from clients’ trade requests during the last look window included the phrase pre-hedging. In the latest draft, this is no longer