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Quantitative Finance · Begrippenlijst

Wat is Give-up line, designation notice?

Ook bekend als: give-up line · designation notice

Definition 27.1 Markets II: Rates, FX and Credit · Hoofdstuk 27 — Getting Access: FX

A give-up line is a prime broker’s agreement to accept the trades that a client executes with a given executing dealer, within limits. A designation notice is the prime broker’s notice to an executing dealer that designates the client as a party authorised to trade on its behalf, and sets the trade types, maximum tenors, currencies and limits of that authority.

A give-up line. The fund executes with any dealer that accepts its prime broker’s name; each trade is given up to the prime broker, which faces the dealer and books an offsetting trade with the fund. The prime broker’s notice tells each dealer what the fund may trade on its behalf and within which limits. Schematic.
Figure 27.1. A give-up line. The fund executes with any dealer that accepts its prime broker’s name; each trade is given up to the prime broker, which faces the dealer and books an offsetting trade with the fund. The prime broker’s notice tells each dealer what the fund may trade on its behalf and within which limits. Schematic.
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