151 Level 1 instruments Level 1 includes all derivatives traded on active organised markets (options, futures, etc.), regardless of the underlying asset (interest rate, currencies, preciousmetals, main equity indices) and equities and bonds listed on an active market. Amarket is considered to be active when prices are readily and regularly available from stock exchanges, brokers, traders, price assessment services or regulatory agencies and such prices represent actual transactions that regularly occur on the market under normal conditions. Corporateandgovernment andagencybondswhosevaluation is based on prices obtained from independent sources that areconsideredexecutableand regularlyupdatedareclassified as Level 1. Most sovereign bond holdings are classified at this level. Level 2 instruments The main products recognised in Level 2 are: - linear derivatives such as interest rate swaps, currency swaps, and foreign exchange forward contracts. These products are valued using simple models shared by the market, based on parameters that are either directly observable (exchange rate, interest rates) or that can be derived from the market price of observable products (currency swaps); - non-linear vanilla products such as caps, floors, swaptions, currency options, stock options, credit default swaps, including digital options. These products are valued using simplemodels that are shared by themarket based on parameters that are either directly observable (exchange rate, interest rates, stock prices) or that can be derived from themarket price of observable products (volatilities). Level 3 instruments Level 3 products are those that do not meet the criteria for classification at level 1 and 2, and are thus mainly products with a highmodel risk or products whose valuation requires the use of significant unobservable parameters. NOTE 12: IMPACT OF CHANGES TO ACCOUNTING METHODS OR OTHER EVENTS N/A NOTE 13: EVENTS AFTER 31 DECEMBER 2021 IMPACT OF THE RUSSO-UKRAINIAN CONFLICT ON CFM INDOSUEZ WEALTH GROUP'S BUSINESS On 24 February 2022, a large-scale military operation was launched by Russia against Ukraine, associated with an invasion of the territory of Ukraine by the armed forces of Russia, with the involvement of Belarus. The European Union condemned this act of war and in response announced the implementation of restrictive, sectoral and individual measures. The CFM Indosuez Wealth Group, in conjunction with the Crédit Agricole Group, has set up a crisis unit tomonitor the impact of the decisions taken by the European Union and the Principality's government. The CFM Indosuez Wealth Group has no investments in Ukraine and Russia. These events had no impact on the 2021 accounts. As things stand, the impact on the 2022 accounts should be limited.
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