Markit says an important benefit will be the use of electronic signatures rather than paper-based signatures, which will improve give-up processing and significantly reduce fulfillment costs. A give-up occurs when a futures player uses one broker to execute one trade and another to clear it, with the broker-exporter “abandoning” trading to the clearing broker. It is estimated that more than 15,000 such agreements are concluded each year, involving almost all forward commission traders who carry out customer transactions. 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.
