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

davidmercer-pic2
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

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Week account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: