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Retains "Active Handling" but shuts off "Traction Control". You enter this mode by pressing and holding the Active Handling button on the console for more than five seconds. Owner's Manual gives a more detailed explanation.
It seems to let the car do more (tire spin and drift) before making corrections. On my car I have to push it pretty hard before it kicks-in. Sort of more fun but still maintaining a margin of safety.
Traction control = prevents rear wheels from spinning during hard acelleration or on poor traction surfaces like wet or snowy roads.
Active Handling - skid control. Applies individual brakes as needed to straighten car out of a slide or skid.
Default mode for car = both systems ON.
Press console button = both systems OFF.
Press and hold button for 5+ seconds = Competitive Driving mode.
This turns taction Control OFF, but leaves Active Handling ON. Allows you to have a little fun, yet still have a safety net in the event the car gets too out of control.