A type of participant in a funds or securities transfer system in which there is a tiering arrangement. Indirect participants are distinguished from direct participants by their inability to perform some of the system activities (e.g. inputting of transfer orders, settlement) performed by direct participants. Indirect participants thus require the services of direct participants to perform those activities on their behalf. In an EU context the term refers more specifically to participants in a transfer system which are responsible only to their direct participants for settling the payments input into the system.
See also: