Mercer: Global Code is a great PR stunt; legitimises front-running

LMAX Exchange chief says the Global Code of Conduct is legitimising last look and pre-hedging, and its authors are misrepresenting the nature of discussions in the MPG

David Mercer: "It’s not a true representation of the real world"

The Global Code of Conduct in its current form is nothing but a “great PR job” and the “worst case of railroading ever seen”, due to its proposed stance on last look and pre-hedging, according to David Mercer, chief executive of LMAX Exchange.

The so-called fatal flaw version of the second part of the Code – currently being circulated among market participants – sanctions the use of last look and also allows market-makers to effectively front-run client orders or pre-hedge, in the expectation

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