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| There are three normal ways of giving up, and ironically none of them involve a contract which is “given up” as such. To make matters worse, the three methods are profoundly different in every respect. | | There are three normal ways of giving up, and ironically none of them involve a contract which is “given up” as such. To make matters worse, the three methods are profoundly different in every respect. |
| ===ISDA Give Up=== | | ===[[ISDA give-up]]s=== |
| Under the [[2005 ISDA Master Give-Up Agreement]], a fund may “give up” [[derivatives]] it has traded with a [[broker]] to its {{tag|Prime broker}}. It will usually do this because it does not have an {{isdama}} with the [[broker]]. Under this arrangement the [[hedge fund]] acts at all times as the [[Prime broker|prime broker’s]] [[agent]] (it may not be a client of the {{tag|executing broker}} at all) and never creates its own principal contract with the executing broker, but simply arranges the contract between the {{tag|executing broker}} and the prime broker. The [[PB]] then puts on a back-to-back trade with the [[HF]] under the {{isdama}} between them. Net result: the PB intermediates between [[EB]] and [[HF]]. Calling this arrangement a “give-up” is something of a misnomer.
| | {{isda giveup}} |
| ===[[Equity give-up]]=== | | |
| | ===[[Equity give-up]]s=== |
| {{equity giveup}} | | {{equity giveup}} |
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