Glossary

Chain and relationship terms

Respondent

The bank that holds an account with another institution in order to settle a currency it cannot clear itself.

Correspondent

The account-holding institution that settles payments on behalf of a respondent bank.

Nostro account

The respondent's own account held at the correspondent, in the correspondent's currency. The same account is a vostro (or loro) from the correspondent's side.

Ultimate clearer

The last institution in the chain — the bank with direct access to the currency's clearing system, where the funds actually settle.

SSI

Standing settlement instruction: the standing arrangement stating where a bank wants to receive funds in a given currency, for a given asset category.

Preferred SSI

Where a bank publishes several instructions for one currency, the one it flags as its preferred route.