Ordinance
on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading
(Financial Market Infrastructure Ordinance, FinMIO)

(Art. 108 lit. d Fin­MIA)

¹ Port­fo­lio com­pres­sion need not be un­der­taken if it would not lead to any mean­ing­ful re­duc­tion in coun­ter­party risk and the coun­ter­party sub­ject to the ob­lig­a­tion doc­u­ments this at least every six months.

² Port­fo­lio com­pres­sion would not lead to any mean­ing­ful re­duc­tion in coun­ter­party risk in par­tic­u­lar if:

a.

the port­fo­lio con­tains no or only a few off­set­table OTC de­riv­at­ives trans­ac­tions;

b.

such activ­ity would jeop­ard­ise the ef­fect­ive­ness of in­tern­al risk pro­cesses and con­trols.

³ Port­fo­lio com­pres­sion also need not be un­der­taken if the cor­res­pond­ing work and ex­pense would be dis­pro­por­tion­ate to the an­ti­cip­ated re­duc­tion in coun­ter­party risk.