A procedure in derivatives trading whereby a broker instructs the custodian to allocate a derivative trade to another account than the broker account. Technically, the broker handling the trade would give up credit for that trade on the record books. Such instructions, in addition to take-up, are part of the allocation process that involves matching the give-up instruction with the notification received from the client. This procedure is meant to give up trades to other participants in order to speed up the position and trade allocation processes.
The involved trades are known as give-up trades.
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