Examples of using Portfolio compression in English and their translations into Slovak
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Post-trade risk reduction services include services such as portfolio compression.
(16b) Post-trade risk reduction services, such as portfolio compression, can lead to a reduction of systemic risk.
Portfolio compression is excluded from the scope of the trading obligation established in Regulation(EU) No 600/2014.
The termination or replacement of the component derivatives in the portfolio compression shall not be subject to Article 28 of this Regulation.
Portfolio compression is excluded from the scope of the Union trading obligation established in Article 28 of Regulation(EU) No 600/2014.
In addition, while it is appropriate to make specific provision for portfolio compression, this Regulation is not intended to prevent the use of other post-trade risk reduction services.
Portfolio compression' is defined in Article 2(1) of Regulation(EU) No 600/2014 and excluded from the scope of the Union trading obligation established in Article 28 of Regulation(EU) No 600/2014.
It is appropriateto clarify that where investment firms and market operators carry out portfolio compression certain provisions of this Regulation and of Directive 2014/65/EU are not applicable in relation to portfolio compression.
(i) investigate portfolio compression and other available non-price forming post-trade risk reduction services which reduce non-market risks in derivatives portfolios without changing the market risk of the portfolios, such as rebalancing transactions;
Six months after the date of entry into force of this amending Regulation, in cooperation with the ESRB, submit a report to theCommission, assessing whether trades directly resulting from post-trade risk reduction services including portfolio compression should be exempted from the clearing obligation.
Investment firms and market operators providing portfolio compressions shall keep complete and accurate records of all portfolio compressions which they organise or participate in.
Months after the date of entry into force of this amending Regulation the Commission shall prepare areport assessing whether trades directly resulting from post-trade risk reduction services, including portfolio compression, should be exempted from the clearing obligation referred to in Article 4(1).
Investment firms and market operators providing portfolio compressions are required to keep complete and accurate records of all portfolio compressions which it organises or participates in.
Counterparties with 500 or more OTC derivative transactions outstanding(facing each other) which are not centrally cleared must have procedures in place to regularly, and at least twice a year,analyze the possibility to conduct a portfolio compression exercise in order to reduce their counterparty credit risk.
Investment firms and market operators providing portfolio compression shall make public through an APA the volumes of transactions subject to portfolio compressions and the time they were concluded within the time limits specified in Article 10.
FCs and NFCs with 500 or more OTC derivative contracts outstanding with a counterparty which are not centrally cleared are required to have procedures to regularly, and at least twice a year,analyse the possibility of conducting a portfolio compression exercise in order to reduce their counterparty credit risk.
Portfolio compression may be provided by a range of firms which are not regulated as such by this Regulation or by Directive 2014/65/EU, such as central counterparties(CCPs), trade repositories as well as by investment firms or market operators.
FCs with 500 or more OTC derivative contracts outstanding with another counterparty must have in place procedures to regularly, and at least twice a year, analyse the possibility to conduct a portfolio compression exercise in order to reduce their counterparty credit risk and engage in such a portfolio compression exercise.
(i) investigate portfolio compression and other available non-price forming post-trade risk reduction services which reduce non-market risks in derivatives portfolios without changing the market risk of the portfolios, such as rebalancing transactions;
Financial counterparties and non-financial counterparties with 500 or more OTC derivative contracts outstanding with a counterparty which are not centrally cleared shall have in place procedures to regularly, and at least twice a year, analyse the possibility to conducta portfolio compression exercise in order to reduce their counterparty credit risk and engage in such a portfolio compression exercise.
When providing portfolio compression, investment firms and market operators shall not be subject to the best execution obligation in Article 27 of Directive 2014/65/EU, the transparency obligations in Articles 8, 10, 18 and 21 of this Regulation and the obligation in Article 1(6) of Directive 2014/65/EU.
Pursuant to EMIR RTS financial counterparties and non-financial counterparties with 500 or more OTC derivative contracts outstanding with a counterparty which are not centrally cleared must have in place procedures to regularly, and at least twice a year, analyse the possibilityto conduct a portfolio compression exercise in order to reduce their counterparty credit risk and engage in such a portfolio compression exercise.
Portfolio compression is a risk reduction process by which two or more counterparties wholly or partially terminate some or all of the derivatives between them, and replace the terminated derivatives with another derivative whose combined notional amount is less than the combined notional amount of the terminated derivatives.
Since central securities depositories(CSDs) will be subject to the same requirements as investment firms when providing certain investment services or performing certain investment activities, the provisions of this Regulationand of Directive 2014/65/EU should not be applicable to firms that are not regulated thereby when carrying out portfolio compression.
Portfolio compression is a risk reduction service in which two or more counterparties wholly or partially terminate some or all of the derivatives submitted by those counterparties for inclusion in the portfolio compression and replace the terminated derivatives with another derivative whose combined notional value is less than the combined notional value of the terminated derivatives.
It should not include facilities where there is no genuine trade execution or arranging taking place in the system, such as bulletin boards used for advertising buying and selling interests, other entities aggregating or poolingpotential buying or selling interests, electronic post-trade confirmation services, or portfolio compression, which reduces non-market risks in existing derivativesportfolios without changing the market risk of the portfolios. .
(c) whether any tradesthat directly result from post-trade risk reduction services, including portfolio compression, should be exempted from the clearing obligation referred to in Article 4(1), taking into account the extent to which those services mitigate risk, in particular counterparty credit risk and operational risk, the potential for circumvention of the clearing obligation and the potential disincentive to central clearing.