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

is consistent with accepted economic methodologies for pricing financial instruments;

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;

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

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.