Compensation agreements are usually put in place to manage the provisions of “trades” of “give-ups”. The execution broker (part A) may or may not receive the standard trading spread. Executing brokers are often paid by non-ground brokers either on retainer or with a pro-trade commission. This full payment to the execution broker may be part of the commission that Broker B charges his client. A: No, previous agreements that are migrated to the Docs platform will not be changed in the new contract submission language. LME Executing Member: This term is used to define the LME member who executes the client`s LME trades according to orders received by an execution broker who is not a member of the LME. LME rules require (i) all abandonment operations to be documented by an abandonment agreement; (ii) all parties to a split agreement are parties to the secession agreement and (iii) the members of the execution and the countervailing members must be parties to the agreement, even if they act as representatives of non-members. If the executing broker and the countervailing broker each have a direct relationship with the client (and, if applicable, a trader) and both are members of LME, the standard versions of the client or trader of the agreement must be used. The following versions were updated in November 2017 and are the standard agreements used in Accelerate DocsTM.
A memo from the Legal and Compliance division is also available, which includes updates to 2017 versions of previous 2008 releases. We archived the 2008 versions of the chords and provided black lines to compare the 2017 and 2008 versions. The FIA Law and Compliance Division regularly publishes and updates standard agreements for the future-give-up process. FIA Tech, for its part, manages Accelerate DocsTM (formerly Electronic Give-Up System (EGUS) which allows brokers, traders and customers to electronically execute standard “give-up” agreements. Companies can use standard agreements either manually in print or electronically in Accelerate DocsTM. Standard traders and customer give-up agreements are available here for download. A: Yes. Each user can get a separate set of permissions in Docs. They can be implemented with read-only access, access to verification agreements, approval of agreements or scales. These settings are managed internally by the company`s system administrator docs.
Clearing Broker: the party that has a term clearing account for the client and on which positions arising from orders executed by an execution broker pursuant to the agreement are eventually abandoned. The countervailing broker must be authorized as a term intermediary in his or her home jurisdiction, but is not required to be a member of an exchange. Section 3 of the agreement provides that, where a member of the exchange where the transactions are made, a countervailing broker may use the services of a compensatory member to clarify stock exchange positions on his behalf. However, these agents are often clearing broker-related companies in another jurisdiction (see “Use of Agents” below to determine when companies should be designated as parties to a “give-up” agreement).