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Article (7) – Derivatives

IA-BOD-RES 26/2014 Effective from 28/12/2014
  1. Companies are allowed to engage in derivative activities for hedging purposes where such derivative transactions are identified with the corresponding risk exposures being hedged, and the risks associated with such derivative transactions are insignificant and remote given the risk reduction benefits that can reasonably be expected from the transactions.
     
  2. Derivative positions which no longer meet the hedging intent shall be closed out promptly.
     
  3. Further guidance on derivatives in Addendum (4) of the regulations herein shall be applied.