Article 106 › 1
CRR
An internal hedge shall in particular meet the following requirements: (a) it shall not be primarily intended to avoid or reduce own funds requirements; (b) it shall be properly documented and subject to particular internal approval and audit procedures; (c) it shall be dealt with at market conditions; (d) the market risk that is generated by the internal hedge shall be dynamically managed in the trading book within the authorised limits; (e) it shall be carefully monitored. Monitoring shall be ensured by adequate procedures.
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Source: EUR-Lex CELLAR · retrieved 2026-09-04