FT ASSET MANAGEMENT
Financial institutions

Correspondent Relationships & Direct Settlement

A reciprocal-account and ledger-based model for institutions that want to establish direct settlement arrangements with FT Asset Management.

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African and European banking professionals in discussion
How the relationship works

Direct settlement built on reciprocal responsibilities.

International settlement is supported by correspondent relationships, account balances and agreed payment instructions. FT Asset Management offers a model based on reciprocal correspondent accounts, mirrored values and ledger-to-ledger settlement.

Each participating institution maintains the agreed account structure for the other. The operating model is implemented only after due diligence, compliance review, contractual agreement and technical or operational approval.

Correspondent accounts Nostro / Vostro structures Mirrored account methodology Ledger-to-ledger settlement Reciprocal balance management
Important: FT Asset Management is an asset management and trust company, not a bank, and does not provide conventional SWIFT cash-transfer capability.
Implementation

Six steps to an operating relationship.

01

Partner onboarding

The participating institution requests a new client profile and completes institutional due diligence.

02

Reciprocal accounts

The institution opens the agreed correspondent account with FT Asset Management, while FT Asset Management establishes a corresponding account with the institution.

03

Funds received

An FT Asset Management account holder places funds into the designated correspondent account under the agreed procedure.

04

Notification

The receiving institution is notified through the agreed authenticated communication channel.

05

Mirrored value

The corresponding amount is recorded within the reciprocal account structure and reconciled.

06

Beneficiary settlement

Following verification and reconciliation, the instructed beneficiary account is credited.

API connectivity

Ready for technical implementation.

Specification

Review the current communication specification and implementation options.

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More information

Understanding the settlement model.

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Why does FT Asset Management use this settlement model?

FT Asset Management does not provide conventional SWIFT cash-transfer capability. Instead, it can establish a direct correspondent relationship with a suitable participating institution. The model uses reciprocal correspondent accounts, mirrored values and ledger-to-ledger settlement, subject to agreed controls and approvals.

What are reciprocal correspondent accounts?

The relationship works in both directions. The participating financial institution opens the agreed correspondent account with FT Asset Management, and FT Asset Management establishes a corresponding account with that institution.

Nostro / VostroAccount perspectives used between institutions when funds are held across entities or jurisdictions.
Correspondent accountAn account maintained as part of the direct institutional relationship.
Mirrored valueCorresponding value recorded within the reciprocal account structure.
Ledger-to-ledgerValue recorded and settled between participating account structures under the agreed process.
What happens when a transfer is made?

Funds are placed in the designated correspondent account. The participating institution receives a notification, records the corresponding value in the reciprocal account structure, and verifies the transaction and balances. After reconciliation, the instructed beneficiary account can be credited.

How are notifications and instructions communicated?

Communication may be automated, semi-automated or manual, depending on the controls agreed by both institutions. Available methods can include API connectors, secure email, telephone confirmation or another mutually agreed authenticated channel. A messaging channel may support notification, but transaction authorization remains subject to the agreed verification process.

Is API integration required?

No. Institutions may begin with an approved manual or semi-automated procedure. For higher transaction volumes, API connectivity can support notification, instruction exchange and reconciliation. The implementation can be adapted to the systems and procedures of the counterparty.

How is a new relationship established?

The participating institution starts by selecting “Request a New Client Profile” in the FT Asset Management client portal. After the online form is completed, additional instructions are provided for institutional due diligence, compliance review, contractual documentation, account setup and testing.

Registration does not activate transfers. The relationship becomes operational only after all required approvals, agreements, account setup and technical or operational tests have been completed.

Does FT Asset Management have an international network?

FT Asset Management has developed a network of international branches and correspondent relationships and seeks to extend it through additional direct relationships with suitable banks and other financial institutions. These relationships do not provide FT Asset Management with conventional SWIFT cash-transfer capability.

View the International Network
Where can our teams find technical documents?

Use the resources below for the current API specification, network overview and supporting documentation. Institution-specific compliance or implementation questions are best addressed in a direct discussion with the FT Asset Management team.

API Communications SpecificationFTAM DocumentsFAQ and further information
Establish a correspondent relationship

Connect your institution with FT Asset Management.

Start institutional onboarding or contact our team to discuss compliance requirements, the appropriate settlement structure and technical implementation.

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International financial professionals discussing an implementation