Risk Mitigation Service

What is Risk Mitigation Service?

Risk Mitigation Service meaning Similar to Portfolio Compression Services, Risk Mitigation Service providers evaluate the portfolio of a swaps market participant and enter into new trades with counterparties in the service providers’ network based on the overall risk profile of their client’s portfolio. However, unlike Portfolio Compression Services, Risk Mitigation Services are not restricted to netting out redundant positions. Risk Mitigation Services may result in new positions that modify the overall risk profile of the client.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary