GIVE UP

Used for listed equity securities . 1) Term used in a securities transaction involving three brokers , as illustrated by the following scenario: Broker A, a floor broker , executes a buy order for broker B. (Another 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 was 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 intended to reimburse a broker for previously provided services (i.e., Research). See: directed brokerage .