Glossary and Acronyms
Agreement between Scheme and Participant of the Scheme. NB: Different versions of adherence may exist, according to the specific chosen role(s) of the Participant.
The base rate for a currency pair which is provided by the FX Provider via POST /quotes/, for transactions starting from value of 0.01. Final rates provided to the PSP may be improved depending on any tier-based or PSP-based improvements set by the FX Provider
Business Identifier Code (BIC)
An 8 or 11 character ISO code assigned by SWIFT and used to identify a financial institution in financial transactions (ISO 9362).
In the Nexus terminology, Destination refers to the receiving side of the Nexus Payment, i.e. the PSP, the IPS, the SAP and the Gateway involved, to move the funds transmitted by the Payer, into the Payee’s account.
The currency of the Recipient. Also known as “Quoted Currency” in ISO 20022 terminology.
The Nexus Gateway deployed by the Destination IPS in a specific Nexus Payment.
The IPS that receives a Nexus Payment for delivery to the Destination PSP, where the Payee of the Nexus Payment holds a Payment Account.
Destination Settlement Account Provider (D-SAP)
For a specific Nexus payment, this is the SAP in the Destination Country. Funds are paid from the Destination SAP to the Destination PSP.
The exchange rate of an FX Provider as provided by Nexus to a Source PSP. This includes any improvements that have been applied based on the size of the transaction or the PSP requesting the rates.
A party that provides FX conversion rates and executes cross currency conversion using liquidity providers in source and destination countries. The FX Provider may be a member of an IPS or may access the IPS indirectly via Settlement Account Providers.
A value in basis points, provided by the FXP, defining how much the base rate provided by the FXP should be improved for larger payments or for specific PSPs.
A payment executed end-to-end, where the funds being transferred from the account of a Payer are irrevocably made available in the account of the Payee within seconds (typically less than 20 seconds).
Instant Payment System (IPS)
A payments system executing instant payments according to the rules of a local or local Payment Scheme or payments protocol
Instant Payment System Operator (IPSO)
IPS Operator: the operator of an instant payment system. The legal entity which contractually provides clearing and settlement services to its participants. Also the entity which adheres to Nexus as participant (in the IPSO role).
Legal Entity Identifier (LEI)
The Legal Entity Identifier, defined as ISO Standard 17442
A participant of an IPS. The member can be a direct or indirect participant. A direct participant is a member, which has its own settlement account in the settlement system (for example, the RTGS of the central bank for IPS that settle in central bank money). An indirect participant is a member not having its own settlement account in the settlement system. An Indirect Participant has a contractual relation with a Direct Participant, to allow its payments being service on the settlement account of the Direct Participant. NB: In the context of this Rulebook, the term “member” is used in a limited sense, specifically to refer to the participation in the local IPS (and may cover one or more local schemes – not only Instant Payments, but also batch payment, direct debit or other). The term “Nexus Scheme Participant” is used in this Rulebook to refer to an entity that participates in the Nexus Scheme. (A PSP may be a member of a local IPS, but not a Participant in the Nexus Scheme.) Where in this Rulebook reference to participation in Nexus Scheme is meant, the term “Nexus Scheme Participant” is used.
Nexus Gateway (NGW)
A software application deployed as an extension of an IPS, through which Nexus Payments are routed and processed. (see also Source Gateway and Destination Gateway).
A near-instant, cross-border payment that complies with the rules and standards of the Nexus Scheme. Most (but not all) Nexus payments are also cross-currency i.e. the Sender’s currency is different from the Recipient’s currency.
The legal rules (based on the law of [jurisdiction to be decided]) and technical standards, together comprising the Nexus cross-border scheme.
Nexus Scheme Organisation (NSO)
The non-profit organisation established in a jurisdiction to be decided, which is accountable for the scheme management. The contracting party for the Adherence Agreement signed by Scheme Participants. The term ‘Scheme Organization’ refers to the organization performing the role of the Scheme Owner. See also Nexus Scheme Owner.
Nexus Scheme Owner
The legal entity that is performing the role of owning, and maintaining, the Nexus Scheme. It is envisaged that this role for Nexus will be performed by the Scheme Organisation . For clarity: A Scheme Owner does not need to be a Financial Institution, nor does it need to be a Payment System Operator.
Nexus Scheme Participant
A legal entity having signed an Adherence Agreement with the Nexus Scheme Owner Nexus Scheme Participants can be: a) PSP (bank or non-bank), acting in the role of PSP and/or Settlement Account Provider; b) IPSO; or c) FX Provider.
A legal entity having signed an Adherence Agreement with the Nexus Scheme Organisation
The account holder whose account is credited for the payment. Payee = Recipient = Creditor (in ISO 20022 terminology)
The account holder whose account is debited for the payment. Payer = Sender = Debtor (in ISO 20022 terminology)
Definition BIS (proposed): A set of business rules, data elements and technical standards to which Participants of the Scheme must comply.
Payment Service Providers (PSP)
PSPs include all entities that are eligible to send and receive domestic instant payments through a particular IPS. These could be banks or non-bank financial institutions according to local eligibility criteria. Every member of an IPS will be listed as a PSP in Nexus, whether or not they are participating in Nexus. Each PSP record will contain an indication of whether the PSP is participating in Nexus and therefore is reachable for Nexus payments.
(definition from BIS) A set of instruments, procedures, and rules for the transfer of funds between or among participants; the system includes the participants and the entity operating the arrangement.
An FXP may want to offer a specific PSP (eg a regular customer) a better rate than the base rate(s). They can do so by defining an improvement that applies only to that PSP.
ISO 20022 terminology for Destination Currency (the Recipient’s currency)
Exchange rate, where Source Currency Amount * Rate = Destination Currency Amount
The individual or business to whom funds are being paid. Equivalent to payee, beneficiary, or Creditor (in ISO 20022 terminology).
The Nexus Scheme Rulebook
See Payment Scheme.
The individual or business initiating the payment to the Recipient. Equivalent to payer, originating customer or Debtor (in ISO 20022 terminology).
Settlement Account Provider (SAP)
A PSP that is a member of an IPS and which provides an account in which an FX Provider can hold funds. For a specific Nexus payment, funds are paid out of this account to the Destination PSP
In the Nexus terminology, Source refers to the initiating side of the Nexus Payment, I.e. the PSP, the IPS, the SAP and the Gateway involved to move the funds to be transmitted to the Payee out of the Payer’s account.
The currency of the Sender. Also known as “Unit Currency” in ISO 20022 terminology
Source Gateway (SGW)
The Nexus Gateway deployed by the Source IPS in a Nexus Payment.
The IPS that sends a Nexus Payment to a Source Gateway. The Nexus Payment is instructed by a Source PSP , to a Source IPS, on behalf of the Payer, who holds a Payment Account at the Source PSP.
Source Settlement Account Provider
The Source Settlement Account Provider is a member of the Source IPS. The Source PSP sends funds (in the Source Currency) to the FX Provider’s account at the Source Settlement Account Provider. This payment is processed through the Source IPS.
FXPs typically offer better exchange rates for larger transactions (so the Recipient receives a larger Destination Currency Amount for a given Source Currency Amount). In Nexus, an FXP can set tiers at which better rates apply. Each tier is defined by a starting threshold value and an improvement that applies to payments above that threshold.
Unique Payment System (UPS)
An Instant Payment System in a single currency. When an Instant Payment System operates in multiple currencies, each IPS-currency pair is identified as a Unique Payment System.
ISO 20022 terminology for Source Currency (the Sender’s currency)
Application Programming Interface
Banking Computer Services Pte. Ltd.
Business Identifier Code
Bank for International Settlements
Bank for International Settlements Innovation Hub
Countering the Financing of Terrorism
Chinese Yuan (when traded offshore)
Committee on Payments and Market Infrastructures
Deferred Net Settlement
European Central Bank
Singapore’s instant payment system: Fast and Secure Transfers
Financial Stability Board
Foreign exchange provider
Gross Domestic Product
Hong Kong Dollar
International Bank Account Number
International Organisation of Securities Commissions
Instant Payment System
International Standards Organisation
Java XML Binding
Jakarta Messaging API (for Java)
The TIPS Mobile Proxy Lookup service
Nexus Scheme Organisation
Payment Service Provider (used inclusively to refer to banks and non-bank PSPs)
Nexus Reference Data Service
Request for Information
Malaysia’s Real-time Retail Payments Platform
Real Time Gross Settlement
Settlement Account Provider
Trans-European Automated Real-time Gross settlement Express Transfer system
TARGET Instant Payment Settlement
India’s Unified Payments Interface
United States Dollar
Last modified 2mo ago