Give Up

A procedure in securities or commodities trading where the executing broker places a trade on behalf of another brokeras if he/she actually executed the trade.This is usually done becausea brokeris too busy to place a trade for a client and asks another broker to place the trade for him/her.On the record books, the trade will not show the executing broker's information, but the broker to whom the client belongs.Thus, the broker of the client and the broker on the other side of the trade will receive the commission, whilethe executing trader will get nothing.This is a grey area of law governing reimbursement of brokers for services(e.g. research).

Pay close attention, here's how it works. Broker X gets a buy order from a client but is too busy to place the trade, so he asks Floor Broker Y, who isn't as busy, to place the order for him/her.Broker Y then buys the stock from Broker Z on behalf of Broker X's client.However, although Floor Broker Y places the trade, he must"give up" the transactionand record it as if Broker X placed the trade sincethe client belongs to him/her. Thus, the transaction is recorded as ifX & Z made the trade, even though Floor Broker Y executed the trade.