(1) A procedure in securities or commodities trading where the executing broker passes information on and verification of a transaction to another broker for clearance and settlement. The two brokers split any commission generated on the transaction in accordance with a previously agreed upon formula. (2) In the U.S., a portion of a fixed securities commission (prior to 1975) passed from the executing broker to another broker on the instructions of the client. This give up was compensation for services rendered by the broker receiving it.