XCG correspondent banking: who clears the XCG

Tracing a XCG chain

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

Who clears XCG payments?

XCG settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a XCG payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 2 distinct institutions act as XCG correspondents.

How concentrated is XCG clearing?

The three largest XCG correspondents between them serve about 100% of the banks that publish a XCG 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 XCG correspondent?

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