The term Exchange for Risk refers to a privately negotiated trade involving the exchange of a futures position for a corresponding Over the Counter swap or instrument. Exchange for Risk is one of several Exchange for Related Positions (EFRP) transactions.
An Exchange for Risk (EFR) is one of several Exchange for Related Positions trades authorized under Rule 538. An EFR involves the exchange of a futures position for a corresponding OTC instrument. In order to conduct this transaction:
The other authorized EFRP trades include Exchange for Physical (EFP), Exchange of Options for Options (EOO) and Exchange for Swap (EFS).