Step 2: Retrieving current FX quotes
The Source Bank asks the Source Gateway for quotes to the Destination Country.
As soon as Sender has selected the Destination Country for the payment (1), the Source Bank can ask the Source Gateway for an FX rate quote (2). This can be in parallel to requesting the SLA above.
The Source Bank can make one of three types of requests:
- 1.BEST: A single best quote, where Nexus will select the FX provider which currently offers the best FX rate. A QuoteID is provided, which the Source Bank must reference when it sends the final payment instruction. (In the case that multiple FX Providers offer the exact same rate, a list is provided, including QuoteIDs for all providers. It is then up to the Source Bank to select one of the FX Providers by using that specific QuoteID in the payment.)
- 2.NOMINATED: A single quote from a nominated FX Provider. This may be used where the Source Bank wishes to use a specific FX Provider (or itself as FX Provider). The Source Bank must know the ID of the FX Provider and specify this ID in the request. Nexus will respond with a QuoteID, which is to be referenced in the final payment instruction.
- The FX Provider may issue private quotes that are only available to a specified list of banks. If the Source Bank is specified as one of these selected banks, Nexus will show the Source Bank the private rate from that FX Provider.
- 3.LIST: A list of all available public quotes with quote IDs. The Source Bank must specify a particular quote ID when it sends the final payment instruction.
In all the cases above, the Source Gateway returns:
- A specific FX rate
- The ID of the FX provider
- A quote ID to be referenced in the final payment instruction
Note: FX Providers can also use the same method at any time to check current rates in the market for the quotes they offer. They would specify LIST as the quote type. This allows them to see if they should revise their own rates.