Explanation: COMPACT is an optional parameter set that you use to specify the type of compaction during migration or backup for all data sets.
SMS relationship: Parameter differs in meaning when applied to SMS-managed or non-SMS-managed DASD volumes or data sets. This COMPACT parameter is only used for SMS data sets that are not compressed on L0; as for non-SMS data sets, it's always in effect since you cannot have a non-SMS dataset compressed on L0.
SETSYS default: If you specify the COMPACT parameter without specifying any subparameters, the SETSYS default is no compaction.
DFSMShsm default: If you do not specify a subparameter with this parameter on any SETSYS command, the DFSMShsm default is no compaction.