Joining Nexus as a third-party FXP

This page relates only to third-party FX Providers.

For Source PSPs that provide their own FX, a different process applies. See Payment setup for PSPs who provide their own FX for details.

Eligibility to be an FXP

A third-party FX Provider must be a licensed financial institution that is:

1. Willing to quote FX rates for specific currency pairs between Nexus countries (ie. from currency A in IPS-A to currency B in IPS-B). These rates will be shown to Source PSPs that have a business relationship with the FXP, when one of those PSPs calls the GET /quotes/ API.

2. Able to hold funds in at least two instant payment systems (IPSs), either directly through their own membership of the IPS, or indirectly through an account they hold with a Settlement Access Provider (SAP). (See Accessing Instant Payment Systems.)

3. Licensed to perform the role as FX Provider by the regulator in their home jurisdiction (if applicable) and compliant with all relevant regulatory requirements in that jurisdiction.

4. Compliant with any local regulatory requirements that apply to each currency that the FX Provider offers (including acquiring local licenses where required, eg for currencies with capital flow measures)

Joining the Nexus Scheme

An FXP must sign an adherence agreement to become a direct member of the Nexus Scheme. The adherence agreement requires them to comply with the various obligations and responsibilities of being an FXP in Nexus, as defined in the Nexus Scheme rulebook.

The FXP must provide the Nexus Scheme Organisation with evidence that the FXP has the necessary licenses to provide FX for their chosen currency pairs.

Onboarding with Nexus and setting up reference data

At the point of onboarding, an FXP must inform Nexus of:

1. The currency pairs that it wishes to quote for.

2. The PSPs with which the FXP has a business relationship (ie is willing to offer FX conversion services to). (See Onboarding PSPs.)

3. The IPSs in which it is able to hold funds (either through membership or via Settlement Access Providers – see next section)

4. For each IPS where the FXP is a member (ie where the FXP acts as SAP to itself):

   1. the FXP's Financial Institution Identification (such as BIC, LEI or Clearing System Member Identification) in that IPS. This is used to identify the FXP's account at the IPS, through which Nexus payments will flow.

   2. the account identifier/number of an account at the FXP (used for internal accounting of transactions related to Nexus payments)

5. For each IPS where the FXP uses an SAP:

   1. the Financial Institution Identification (such as BIC, LEI or Clearing System Member Identification) of the FXP's SAP, and

   2. the account identifier/number of the FXP's account at that Settlement Access Provider (which will be credited/debited by the SAP as appropriate)

This information is stored by Nexus and used to route payments to and from the FXP's account in various countries. It is provided to PSPs when they call the GET /quotes/{quoteId}/intermediaryAgents/ API operation with a valid quote ID.

Integrating with Nexus

FXPs will need to develop (or adapt) their systems to:

• Submit information about rates, tier-based improvements, PSP-based improvements and new business relationships to the Nexus APIs

• Accept notifications of completed payments from the Nexus APIs

• Process these notifications and (if necessary) integrate the information into the systems that track their liquidity in different currencies

• Revise their rates as needed in order to manage their liquidity