(b)

the institution shall have in place clearly defined policies and procedures for the active management of positions or portfolios in the trading book; those policies and procedures shall include the following: which positions or portfolios of positions may be entered into by each trading desk or, as the case may be, by designated dealers; the setting of position limits and monitoring them for appropriateness; ensuring that dealers have the autonomy to enter into and manage the position within agreed limits and according to the approved strategy; ensuring that positions are reported to senior management as an integral part of the institution's risk management process; ensuring that positions are actively monitored with reference to market information sources and an assessment is made of the marketability or hedgeability of the position or its component risks, including the assessment, the quality and availability of market inputs to the valuation process, level of market turnover, sizes of positions traded in the market; active anti-fraud procedures and controls;

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Source: EUR-Lex (Cellar) · retrieved 2026-10-12 · Text as adopted (Official Journal); later amendments are not incorporated in this text.