The Jolly Contrarian

Give up: Difference between revisions

Page Discussion

Give up (view source)

Revision as of 09:53, 15 May 2020

738 bytes removed ,  15 May 2020
no edit summary
No edit summary
No edit summary
 
(7 intermediate revisions by the same user not shown)
Line 1: Line 1:
[[File:Rickroll.jpg|thumb|right|The original EGUS standard electronic give up was developed by the futures clearing merchant Stock, Aitken & Waterman]]
{{anat|brokerage|[[File:Rickroll.jpg|centre|thumb|500px|The original EGUS standard electronic give up was developed by the [[futures commission merchant]] Stock, Aitken & Waterman]]}}
Never surrender.  
''Never'' surrender.  


A [[give up]] is, in practical theory, an arrangement whereby a [[hedge fund]] “gives up” pending transaction — be it a [[derivative]] or a [[cash trade]] — it has executed (or, cough, unsubtly hinted it is “highly interested” in executing) to its [[prime broker]], who accepts the [[hedge fund]]’s contract with the [[executing broker]] on condition that it puts on an economically identical off-setting transaction with the [[hedge fund]].
A [[give up]] is, in practical theory, an arrangement whereby a [[hedge fund]] “gives up” pending transaction — be it a [[derivative]] or a [[cash trade]] — it has executed (or, cough, unsubtly hinted it is “highly interested” in executing) to its [[prime broker]], who accepts the [[hedge fund]]’s contract with the [[executing broker]] on condition that it puts on an economically identical off-setting transaction with the [[hedge fund]].
Line 7: Line 7:


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]]s===
===ISDA Give Up===
{{isda giveup}}
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.
 
===Equity Give Up===  
===[[Equity give-up]]s===  
{{equity giveup}}
{{equity giveup}}
===ETD Give Up===
===ETD Give Up===
Documented under the {{tag|FIA}} standard giveup documentation, available free to the world, [http://www.fia-tech.com/EGUS/Agreements/standard.asp here]. There is a [http://www.fia-tech.com/downloads/STDC-2008-final.pdf Customer Version] and a [http://www.fia-tech.com/downloads/STDT-2008-final-1.pdf Trade Version] of the [[Electronic Give-Up System]] ([[EGUS - CCP|EGUS]]).  
Documented under the {{tag|FIA}} standard giveup documentation, available free to the world, [http://www.fia-tech.com/EGUS/Agreements/standard.asp here]. There is a [http://www.fia-tech.com/downloads/STDC-2008-final.pdf Customer Version] and a [http://www.fia-tech.com/downloads/STDT-2008-final-1.pdf Trade Version] of the [[Electronic Give-Up System]] ([[EGUS - CCP|EGUS]]).  
Retrieved from "https://jollycontrarian.com/index.php?title=Special:MobileDiff/19858...44554"