Give Up Agreement Clearing Broker

Abandonment is a trading procedure for securities or commodities in which an exporting broker trades on behalf of another broker. It is called an “abandonment” because the broker who trades forgoes credit for the record book transaction. A task is usually accomplished because a broker is unable to place a business for a client because of other employment obligations. An abandonment may also occur because the original broker works on behalf of an interdeal broker or a prime broker. Notwithstanding the contrary provisions of an agreement (including, but not limited to the give-up agreement, notification, inversion agreement, inversion agreement, money exchange agreement or dual maturity), such notification is effective upon receipt by the investment manager and JPMC is empowered to take the measures covered in Section 5(i) on the basis of the powers and limits defined in these notices. Under the 2005 ISDA Master Give-Up Agreement, a fund can “abandon” derivatives it negotiated with a broker at its first broker. He will usually do so because he does not have an ISDA master contract with the broker. Under this agreement, the hedge fund acts at all times as an agent of the first broker (he cannot be at all client of the execution broker) and never creates his own main contract with the execution broker, but simply arranges the contract between the execution broker and the primer. The PB then sets up a back-to-back exchange with hf as part of the ISDA-Master agreement between them. Net result: PB intermediate products between EB and HF. Calling this provision “give-up” is a kind of bad name.

The Filer will generally use as a clearing agent the international brokerage services uniform execution (“Give-Up”) convention: version 2008 (© Futures Industry Association, 2008), as can be revised from time to time, as the give-up agreement with institutional eligible clients. Acceptance of abandonment is sometimes referred to as give-in. Once a trade is actually executed, it can be called “give-in.” However, the use of the term “give” is much rarer. Note: Stock “bours” are the standard method for setting up Delta One stock swups on the European market, a common method in APAC, but never seen in the United States.

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