Glossary

Updated 23 September 2018

This glossary offers definitions of technical terms commonly used in the BIS Quarterly Review.

The glossary is also available as a PDF file in ChineseFrench, German, Italian and Spanish.

compression

Compression is a process whereby two or more counterparties tear up existing derivatives contracts and replace them with a smaller number of new ones that leave the economic exposures materially unchanged. The elimination of economically redundant derivatives positions reduces the number of contracts and gross notional amounts.

Updated: 21 Aug 2018
compression

Compression is a process whereby two or more counterparties tear up existing derivatives contracts and replace them with a smaller number of new ones that leave the economic exposures materially unchanged. The elimination of economically redundant derivatives positions reduces the number of contracts and gross notional amounts.

Updated: 21 Aug 2018