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Held for Risk Management (HRM) Derivative
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A distinction made in some Financial Accounting Standards Board (FASB) statements. A free-standing derivative position which is part of a reporting enterprise's hedging or risk management activities. The value of this position is marked-to-market to a below-the-line equity account during each accounting period. A related position is in place and both positions pass through earnings only when the risk management purpose has been achieved and/or disposal of the related position has been reported. See also Trading Derivative.
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