CDF correspondent banking: who clears the CDF

Tracing a CDF chain

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

Who clears CDF payments?

CDF settles through the local clearing system. Banks without direct access hold a nostro account with a correspondent that has it, so a CDF payment reaches the beneficiary by settling at that correspondent first and moving inwards. In the current dataset 7 distinct institutions act as CDF correspondents.

How concentrated is CDF clearing?

The three largest CDF correspondents between them serve about 70% of the banks that publish a CDF 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 CDF correspondent?

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