For using marking-to-model, financial and non-financial counterparties shall have a model that:

(a) incorporates all factors that counterparties would consider in setting a price, including using as much as possible marking-to-market information;

(b) is consistent with accepted economic methodologies for pricing financial instruments;

(c) is calibrated and tested for validity using prices from any observable current market transactions in the same financial instrument or based on any available observable market data;

(d) is validated and monitored independently, by another division than the division taking the risk;

(e) is duly documented and approved by the board of directors as frequently as necessary, following any material change and at least annually. This approval may be delegated to a committee.