The Single Resolution Board has issued updated operational guidance on the solvent wind-down (SWD) of trading books, setting revised expectations for how banks should plan for and, if needed, execute an orderly exit from trading activities in resolution. The update is intended to support resolvability for banks with material trading books and replaces the SWD guidance issued in December 2021. The guidance sets out scope and core expectations to ensure banks can develop and maintain SWD planning capabilities and can execute an SWD plan within a reasonable timeframe. To simplify and improve readability, references to a “steady state” and transitional arrangements, including staggered expectations, have been removed. The updated framework also separates expectations for describing trading activities, dependencies and complexity (the SWD plan) from purely operational expectations (the SWD playbook), allowing more flexible application, including cases where a bank may be asked to prepare only an SWD plan, and enabling a more tailored approach based on the bank’s risk profile.
Single Resolution Board 2025-07-02
Single Resolution Board updates solvent wind-down guidance for trading books to increase proportionality and flexibility
The Single Resolution Board has updated its guidance on the solvent wind-down of trading books, replacing the 2021 guidance. The revised framework clarifies expectations for banks' SWD planning and execution, removing references to "steady state" and transitional arrangements. It distinguishes between SWD plans and playbooks, allowing for more tailored application based on a bank's risk profile.