A term used to describe a transaction between three brokers where one does not...
A securities transaction made by a broker on behalf of another broker without recording his name. He "gives up".
Used for listed equity securities. (1) Term used in a securities transaction involving three brokers, as follows: Broker A, a floor broker, executes a buy order for broker B (a member firm broker who has too much business at the time to execute the order). The broker with whom broker A completes the transaction (the sell-side broker) is broker C. Broker A "gives up" the name of broker B, so that the record shows a transaction between broker B and broker C even though the trade is actually executed between broker A and broker C; (2) distribution of commissions to brokerage houses not participating in a trade. This is a grey area of the law governing reimbursement of a broker for services (e.g., research). See: Directed brokerage.
An order that, at the request of the customer, is credited to a brokerage house that has not performed the execution service.
An order executed by one brokerage house, but cleared by another house at the request of the customer.
The practice of the payer of a commission or fee directing the recipient to "give up" part of the fee to another broker. In some situations the practice may be illegal.
The action of a broker excluding his or her name in a securities transaction that involves two other brokers.
A contract executed by one broker for the client of another broker that the client orders to be turned over to the second broker. The broker accepting the order from the customer collects a wire toll from the carrying broker for the use of the facilities. Often used to consolidate many small orders or to disperse large ones.
In trading in securities or commodities, applied to an order executed by one broker for another broker's customer that the client directs be "given up" to the latter broker