Compare this to the cash development process, in which the Premier Broker`s client looks for a price indication from the executive broker, but never trades, but orders his primeur broker to do so against the execution of a clear exchange of shares between the primeur broker and the client. This one too is a false name, quite amusing[1], since here too, there is never a contract that is abandoned. This is an agency contract under which a first broker (referred to as a « designated party ») may enter into transactions under an ISDA framework agreement with an executive broker (referred to as a « dealer ») on behalf of the first broker of the designated party. There is never a main contract between the designating party and the merchant. Indemnification agreements are usually established to manage the provisions of give-up trades. The executive broker (Part A) may or may not obtain the standard trading price. In the age of parquet trading, one broker may not be able to put it on the floor, and another broker would place trading as a kind of proxy. Overall, conducting a trade on behalf of another broker is usually part of a waiver agreement agreed upon in advance. Agreements concluded in advance usually contain provisions on OTC exchange procedures as well as compensation. Give-up trades are not standard practices, so payment is not clearly defined without prior agreement. There are three main parties that participate in a give up trade.

These parties include the executive broker (Part A), the client`s broker (Part B) and the broker who takes the opposite side of the trade (Part C). A standard trade consists of only two parts, the buying broker and the selling broker. Abandonment also requires another person who carries out the trade (Part A). . . .

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