An FX Provider can be any licensed financial institution that is:
- 1.Willing to quote FX rates for specific corridors (ie. from currency A in IPS-A to currency B in IPS-B). These rates will be shown to Source PSPs when any PSP calls the
- 2.Able to hold funds in at least two instant payment systems (IPSs), either directly through membership of the IPS, or indirectly through a Settlement Account Provider (SAP). (See Accessing Instant Payment Systems below.)
- 3.Licensed to perform the role as FX Provider by their regulator.
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.
At the point of onboarding, an FXP must inform Nexus of:
- The corridors (currency pairs) that it wishes to quote for.
- The IPSs in which it is able to hold funds (either through membership or via Settlement Account Providers – see next section)
- For each IPS, whether the FXP accesses the IPS through (a) membership of the IPS or (b) indirect access via a Settlement Account Provider (See Accessing Instant Payment Systems below)
- For IPSs where the FXP is a member (ie the FXP acts as SAP to itself):
- the FXP's BIC in that country. (This is used to identify the settlement account to and from which payments should be made.)
- For IPSs that the FXP accesses via a separate SAP,
- the BIC of the FXP's Settlement Account Provider, and
- the number of the FXP's account at that Settlement Account Provider
This information is stored by Nexus and used to route payments to and from the FXP's account in various countries.