(b) it shall be properly documented and subject to particular internal approval and audit procedures;
(c) it shall be dealt with at market conditions;
(e) it shall be carefully monitored in accordance with adequate procedures.
2. The requirements of paragraph 1 apply without prejudice to the requirements applicable to the hedged position in the non-trading book.
3. By way of derogation from paragraphs 1 and 2, when an institution hedges a non-trading book credit risk exposure or counterparty risk exposure using a credit derivative booked in its trading book using an internal hedge, the non-trading book exposure or counterparty risk exposure shall not be deemed to be hedged for the purposes of cal…