TMT correspondent banking: who clears the TMT

Tracing a TMT chain

Each instruction names the institution holding that bank's TMT account. Following those links repeatedly ends at a bank that publishes no onward TMT instruction — the ultimate clearer, with direct access to clearing. That is where the money actually settles before moving inwards to the beneficiary.

Who clears TMT payments?

TMT settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a TMT payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 1 distinct institutions act as TMT correspondents.

How concentrated is TMT clearing?

The three largest TMT correspondents between them serve about 100% of the banks that publish a TMT instruction. Concentration matters because the withdrawal of one correspondent can affect a large number of respondent banks at once.

How do I find a bank's TMT correspondent?

Search the bank's BIC, select TMT, and the chain resolves hop by hop to the institution that clears the currency, including the nostro account number on each relationship.