Risk Mitigation Service

This Issue in United States

Concept of Risk Mitigation Service in Futures Trading

In this context of financial law, the following is a definition of Risk Mitigation Service: 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