The SRB has published its operational guidance on the solvent wind-down (SWD) of derivatives and trading books, in line with the Expectations for Banks (EfB) document published in April 2020.
The solvent wind-down of trading books is an approach that can be used for exiting trading activities in an orderly manner, while avoiding posing risks to financial stability. The absence of a credible SWD plan can jeopardise the credibility and feasibility of the resolution strategy of a bank with material trading books. Due to the size and complexity of some banks’ trading books, SWD planning contributes to banks’ resolvability.
The operational guidance was developed following work at the level of the Financial Stability Board (FSB), surveys, a pilot exercise and consultation with G-SIIs. It applies to SRB entities with material trading activities.
The operational guidance sets out the scope and main expectations for SWD planning and potential execution, with the objectives to:
- adequately prepare, develop and maintain banks’ capabilities for the planning of a SWD in resolution, and
- to ensure execution capabilities of the SWD plan in a reasonable timeframe.
The SRB updated its operational guidance in June 2025, effectively replacing the guidance document published in December 2021 that was aimed at facilitating the phase-in of SWD-related expectations. The press release is available here.
The application of this operational guidance is specific to each bank and may be tailored to individual situations to ensure the right level of proportionality.
Guidance for banks - July 2025
Documents
Related news and press releases
- New update introduces greater proportionality and flexibility
- Replaces guidance issued in 2021 and aims to enhance resolvability
The SRB publishes today...
The SRB publishes today guidance on solvent wind-down of derivatives and trading books in resolution, in line with its Expectations for Banks document...