portfolio compression
as defined in Regulation (EU) No 600/2014 of the European Parliament and of the Council of…, Article 2(1), point (47) (Definitions)
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.