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 [[File:Rickroll.jpg|thumb|right|The original EGUS standard electronic give up was developed by the futures clearing merchant Stock, Aitken & Waterman]]
-A [[give up]] is in practical theory an arrangement whereby a pending trade between a [[hedge fund]] and an [[executing broker]] - be it a [[derivative]] or for a [[cash trade]] - is “given up” by the hedge fund to its [[prime broker]], who accepts the fund's contract with the executing broker on condition that it can put 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]].
 It sounds, you might think, like some kind of novation. But oh, no. That would be far too sensible.
-There are three normal ways of giving up, and ironically neither of them involve a contract which is “given up” as such.
+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''': 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|prime broker’s]] [[agent]] (it may not be a client of the {{tag|executing broker}} at all) and never creates its own contract with the executing broker - it 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 ISDA 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''': Under a cash equity give-up, the hedge fund seeks a ''firm price'' indication from the {{tag|executing broker}}, but ''does not act on it'': rather, the [[hedge fund]] takes the quote and instructs its [[prime broker]] to do execute it — directing its attention to the winsome executing broker who is awaiting its call (in practice, the [[executing broker]] will “allege” the trade to the [[prime broker]], which is rather like buzzing in to answer a question on University Challenge before Bamber Gascoigne has finished asking it: “a little birdie tells me you are going to instruct me to trade on an equity to [[hedge]] a [[swap]] you’re about to put on with your client hedge fund X. Well — here it is!”). Once the [[PB]] has traded with the [[EB]], the [[PB]] creates a back-to-back transaction with its client, usually in the shape of an [[equity swap]] transacted under an {{isdama}}. This one is a misnomer too, amusingly enough<ref>when you are a [[prime brokerage]] [[mediocre lawyer|lawyer]], you have to take your yuks where you can find them</ref>, since here, also, there is never a contract that is given up. Note that in theory — even if not awfully often in practice — the prime broker can feign total ignorance and refuse to transact, thereby hanging the [[executing broker]] out to dry with any recourse against anyone for the equity trade it has executed.
+===ISDA 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]]). The {{tag|ETD}} give-up is the only one that functions as a real trade between client and [[executing broker]] and then a [[novation]] of that trade from client to [[clearing broker]], at which point a back-to-back transaction springs into life between the [[clearing broker]] and the [[client]].
+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===
+Under a cash equity give-up, the [[hedge fund]] seeks a ''firm price'' indication for a cash equity from an {{tag|executing broker}}, but ''does not act on it'': rather, the [[hedge fund]] takes the quote and instructs its [[prime broker]] to do execute it — directing its attention to the winsome [[executing broker]] who is awaiting its call (in practice, the [[executing broker]] will “allege” the trade to the [[prime broker]], which is rather like buzzing in on University Challenge before Bamber Gascoigne has finished asking the question: “a little birdie tells me you are going to instruct me to trade on an equity to [[hedge]] a [[swap]] you’re about to put on with your client hedge fund X. Well — here it is!”).
+Once the [[PB]] has traded with the [[EB]], the [[PB]] creates a back-to-back transaction with its client, usually in the shape of an [[equity swap]] transacted under an {{isdama}}.
+This one is a misnomer too, amusingly enough<ref>when you are a [[prime brokerage]] [[mediocre lawyer|lawyer]], you have to take your yuks where you can find them</ref>, since here, also, no contract is ever “given up”. Note that in theory — even if not awfully often<ref>That is to say, ''ever''.</ref> in practice — the [[prime broker]] can feign total ignorance and refuse to transact with the [[executing broker]], thereby hanging the [[executing broker]] out to dry with any recourse against anyone for the equity trade it has executed. The equity broker may have words to the hedge fund client about this, of course, but not ones that would sound a claim in contractual damages.
+===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]]).
+The {{tag|ETD}} give-up is the only one that functions as a real trade between client and [[executing broker]] and then a [[novation]] of that trade from client to [[clearing broker]], at which point a back-to-back transaction springs into life between the [[clearing broker]] and the [[client]].
 ===See Also===