http://www.legislation.gov.uk/eur/2013/149/article/17Commission Delegated Regulation (EU) No 149/2013 of 19 December 2012 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to regulatory technical standards on indirect clearing arrangements, the clearing obligation, the public register, access to a trading venue, non-financial counterparties, and risk mitigation techniques for OTC derivatives contracts not cleared by a CCP (Text with EEA relevance)Commission Delegated Regulation (EU) No 149/2013Commission Delegated Regulation (EU) No 149/2013 of 19 December 2012 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to regulatory technical standards on indirect clearing arrangements, the clearing obligation, the public register, access to a trading venue, non-financial counterparties, and risk mitigation techniques for OTC derivatives contracts not cleared by a CCP (Text with EEA relevance)King's Printer of Acts of Parliamenthttps://webarchive.nationalarchives.gov.uk/eu-exit/https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02013R0149-20180103texttext/xmlen2023-12-11Expert Participation2023-07-11 CHAPTER VIII <Strong>RISK-MITIGATION TECHNIQUES FOR OTC DERIVATIVE CONTRACTS NOT CLEARED BY A CCP</Strong> (Article 11(14)(b) of Regulation (EU) No 648/2012)Criteria for using marking-to-model Article 17 For using marking-to-model, financial and non-financial counterparties shall have a model that: 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.