Give up: Difference between revisions

Give up (view source)

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 There are two normal ways of giving up, and ironically neither of them involve any contract which is given up.
-*'''ISDA Give Up''': under the [[2005 ISDA Master Give-Up Agreement]], derivatives may be given up to a [[prime broker]], but note under this arrangement the hedge fund acts at all times as the prime broker's agent, (it often won't be a client of the executing broker at all) and never creates its own contract with the executuing broker. Thus there's only ever one contract between Dealer and Prime Broker - so the document is a misnomer of sorts.
+*'''ISDA Give Up''': under the [[2005 ISDA Master Give-Up Agreement]], derivatives traded under an {{isdama}} may be given up to a {{tag|Prime Broker}}. Under this arrangement the hedge fund acts at all times as the prime broker's agent (it often won't be a client of the executing broker at all) and never creates its own contract with the executuing broker. Thus there's only ever one contract between Dealer and Prime Broker - so the document is a misnomer of sorts.
 *'''Equity Give Up''': Under a cash equity give-up process, the prime broker's client seeks a price indication from the executing broker, but never transacts any trade at all, but rather takes the quote and instructs its prime broker to do so, and following execution the PB creates a back-to-back transaction with its client. This one is a misnomer to, amusingly enough*, since here, also, there is never a contract that is given up.
-Olly