As the listed derivatives industry has evolved over the last few decades, it has become routine for customers to direct their futures and options orders to one or more brokers for execution with instructions to allocate trades to a different broker(s) for clearing. A give-up trade occurs when a customer selects one broker to execute its trades and a different broker to clear its trades.

Whether you’re a customer or an employee at a broker, exchange, or CCP, understanding give ups and the complexities they add to the trade flow is essential. This online course illustrates how the introduction of give ups alters the trade flow for futures and options on futures. It also demonstrates the challenges that customers and brokers encounter in executing and clearing trades on Trade Date (T+0).

Give Up Essentials course pedagogy uses three trade flows to illustrate how give ups introduce complexity and risk to the executing and clearing process:

• A 2-party trade flow where a single broker executes and clears the trade for a customer. This trade flow does not include a give up but sets the stage for showing how introducing give ups add complexity and risk to the process.
• A 3-party trade flow includes the customer and one or more executing and clearing brokers.
• A 4-party trade flow introduces the account manager to the trade flow and covers allocation of bunched orders.

e-Learning Content

This training content focuses on a particular area of back-office operations – specifically give-up processing, including the allocation and claim process. The course consists of seven modules including knowledge checks and a 25-question assessment.

Give Up Essentials is a required Level 1 course for candidates seeking to earn a Give-Up Professional micro-credential.

e-Learning Outcomes

• Able to explain the significance of give ups and the complexities that they introduce to the flow of a futures trade
• Describe the roles and responsibilities of market participants involved in the futures trading process and the risks inherent in give ups
• Understand the effect that give ups have on various trade flows
• Explain the complexities specifics to a give-up trade being allocated among multiple customer accounts

Who Should Take This Course?

• Employees at executing brokers, clearing brokers, introducing brokers, exchanges, and clearinghouses.
• Customers such as commercial hedgers, institutional investors, commodity pool operators, commodity trading advisors, hedge funds, proprietary traders and retail traders that place their futures and options orders through an executing broker(s) and choose a different clearing broker(s) to clear their trades.
• Employees at organizations that support trading, clearing and settlement functions or market regulators who need a better understanding of give ups, allocation and clearing processes.

Training Duration: Approximately 60-75 minutes. Course completion is earned by passing the assessment at the end of the course with a score of 80% or higher.

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Qualify for a Discount?  FIA Member firms and their employees are eligible for discounts on courses. FIA members include more than 300 financial services firms as well as fund managers, commercial hedgers, global exchanges, technology vendors, and legal and other professional services providers.