Give-up agreement - Financial definition
Financial acronyms
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Concise definition of the term give-up agreement
Agreement which sets the legal frame in which an entity, named clearing broker, can negotiate tripartite market orders with an executing broker on behalf of the order initiator (a third entity or the client).
Comprehensive definition of the term give-up agreement
The agreement is signed by the executing broker, the clearing broker, and the order initiator.
Under such an agreement, transactions are closed between the executing broker and the order initiator. The clearing broker is acting solely as an order transmitter.
Synonym: execution-only agreement