Quotes are generated in response to a specific quote request from a specific PSP. Quotes specify the rate available to the Source PSP after any tier-based or PSP-based improvements have been applied.
First the Source PSP calls the
GET /quotes/API, specifying the source and destination currencies and the value of the payment.
Nexus will then:
- 1.retrieve the rates for the currency pair requested by the PSP
- 2.for each FXP providing a rate:
- Apply tier-based improvements: Nexus will check whether the transaction value is higher than any of the tiers set by FXPs for that currency. If it is, Nexus will apply the improvement to the relevant FXP's base rate
- Apply PSP-based improvements: Nexus will check whether the FXP has registered a PSP-based improvement for the requesting PSP. If so, Nexus will apply the PSP-based improvements to the relevant rate (after any tier-based improvements have been applied).
- 3.return the full list of quotes with rates that have already been improved for both tier-based and PSP-improvements.
Every quote includes a quote ID which is unique to the PSP's quote request. The usage of this quote ID is explained below.
The Source PSP will:
- 1.Select their preferred quote from the list of quotes provided by Nexus. They may simply choose the best rate in the market or may choose a preferred FXP. (If the PSP is themselves an FXP, they may select their own quote.)
If the Sender approves the payment at that rate:
- The PSP will call the
GET /intermediaryAgents/API to retrieve the relevant account numbers or bank identifiers of the FXP's SAPs. These will be used to fill the
IntermediaryAgentblocks of the
pacs.008payment instruction that the Source PSP will send to their local IPS
- The quote ID will also be included in the
pacs.008, allowing Nexus to convert the amounts at the correct exchange rate.
A Sender of a payment would normally be shown the final FX rate (selected by the PSP, and possibly marked up by the PSP), before entering the details of the Recipient. To ensure a good user experience, we want the Sender to be able to complete the payment setup process without being asked to agree to a new, revised FX rate.
For this reason, FX Providers are obliged to honour a quote for exactly ten minutes (600 seconds) after it is provided to a Source PSP even if the FXP has since provided new rates.
Within the Nexus FX Service, every quote has an expiry time that is automatically set to 10 minutes after the quote is generated and returned to the Source PSP.
This 10-minute limit is intentionally set to be long enough for most Senders to be able to complete the payment setup process without having to refresh the agreed rate. The 10-minute limit is standard across all FXPs for Nexus.
FX Providers could be asked to honour quotes for a longer period of time, but this would result in them offering worse rates to allow for the greater risk of market FX rates changing before the sender completes the payment. Ten minutes is considered to be a fair trade-off between user experience for the Sender, and FX risk for the FXP.
For simplicity, in the following example there is only one FXP and two Senders.