What is an EGUS agreement?
What is an EGUS agreement?
EGUS is a product from the Futures Industry Association which facilitates electronic give-ups. It is an Internet based system that allows all parties of a give-up agreement to execute the FIA International Uniform Give-Up Agreement electronically.
Who owns FIA Tech?
The investors are comprised of ABN AMRO Clearing, Bank of America, Barclays, Citi, Credit Suisse, Goldman Sachs, J.P. Morgan, Morgan Stanley, UBS, and Wells Fargo. FIA will retain an ownership stake in FIA Tech and will continue to serve on its board.
What does FIA Tech do?
FIA Tech collaborates with the global futures industry to improve operational efficiency via integrated, cloud-based systems. FIA Tech provides key services and processes including managing legal agreements, settling brokerage, meeting compliance requirements and automating reconciliation.
What is a futures give up agreement?
In a give-up agreement, an executing broker places a commodity or security trade on behalf of another broker. It is called a “give up” because the broker executing the trade gives up credit for the transaction on the record books.
What is a clearing broker?
(a) The term “Clearing Broker-Dealer” or “Clearing Broker” shall mean the member firm that has been identified in the System as principal for clearing and settling a trade, whether for its own account or for a correspondent firm.
What is an executing broker?
An executing broker is a broker that processes a buy or sell order on behalf of a client, usually at a hedge fund. Executing brokers are usually middlemen who are housed under a prime brokerage service, which offers a one-stop-shop service for large active traders.
What is name give up?
Employed by some swap execution facilities (SEFs), post–trade name give-up is the practice of disclosing or causing to be disclosed the identity of each swap counterparty to the other after a swap transaction has been matched anonymously on a SEF and submitted for clearing to a derivatives clearing organization.
Who is the largest clearing firm?
Rank Firm Parent company Main phone Website B-D clients % chg. vs.
| Rank | Firm | Phone |
|---|---|---|
| 1 | Pershing LLC | (201) 413-2564 |
| 2 | Penson Worldwide Inc. | (212) 273-6835 |
| 3 | National Financial Services LLC | (617) 563-8738 |
| 4 | Broadcort & Merrill Lynch Professional Clearing Corp. | (646) 855-3507; (212) 670-5019 |
How do clearing brokers make money?
How a Clearing Fee Works. To earn a clearing fee, a clearing house acts as a third-party to a trade. From the buyer, the clearing house receives cash, and from the seller, it receives securities or futures contracts. It then manages the exchange, thereby collecting a clearing fee for doing so.
How do clearing houses make money?
Clearing firms make big money by selling memberships to professional individual traders and corporations. The higher the membership price, the more rights and privileges the member enjoys. At the time of publication, the selling price for a Chicago Mercantile Exchange, or CME, membership was $400,000.
How does a clearing house make money?
Who are the largest clearing houses?
There are two major clearing houses in the United States: The New York Stock Exchange (NYSE) and the NASDAQ.
