Tier-based improvements for larger transactions
In Nexus a specific FXP can offer better rates for larger transactions. This works as follows:
- For each specific Source Currency, the FXP can define a number of “tiers” at which better rates apply.
- For each tier, the FXP will define how much the base rate (as provided in the
POST /rates/API) should be improved, in basis points. - For payments smaller than the lowest tier, the base rate (provided in the
POST /rates/API) applies. (This is recorded in Nexus as a rate with a threshold of zero.) - Important: After submitting a new tier or changing the rate on a tier, changes will only be applied to newly submitted rates. Nexus will not retroactively apply changed rates to existing rates.
Note:
- An FXP can choose whether or not to set tiers for a specific currency, and how many tiers to set.
- Different FXPs can set different tiers
ELEMENTS | USAGE | EXAMPLES |
Id | Autogenerated primary key of this tier, unique to a specific FXP, Source Currency and threshold (minimum amount) | 20515 |
FXP Id | Internal Nexus ID for the FXP (not external ID such as BIC or LEI, which is used in the API requests and responses) | 1301 |
UnitCcy | ISO 20022 term for Source Currency. Thresholds relate to value of the payment in this currency only (not Destination Currency) | EUR |
Threshold | Minimum transaction size IN SOURCE CURRENCY at which the improvement applies | 50,000.00 |
Improvement | An improvement, recorded in basis points, which is applied to the base rate. | 100.00 |
DateTimeExpired | Initially blank. Will be set when an FXP provides a new improvement for this threshold. | |
WORKED EXAMPLE - TIER IMPROVEMENTS
The Source Currency is Euros. The maximum payment permitted through the TIPS payment system is EUR 100,000. The FXP could therefore choose to set the following tiers:
FXP Id | SOURCE CURRENCY | TIER THRESHOLD (Minimum transaction size at which the improvement applies) | IMPROVEMENT in basis points (applied to the base rate in the FXP’s quote) |
FXP-A | EUR | 25,000 | 50 |
FXP-A | EUR | 50,000 | 100 |
FXP-A | EUR | 75,000 | 150 |
This means that for a payment of 50,000, the rate will be improved by 1%, and so the amount received by the Recipient will be 1% greater than it would have been with the base rate.
If FXP-A quoted the base rate for EUR>SGD at 1.500, then the improvement would be calculated as:
Improved rate = Base Rate * (1 + (basis points / 10000)
= 1.5000 * (1 + (100 / 10000))
= 1.5000 * (1 + 0.01)
= 1.5000 * (1.01) = 1.5150
Note that for transactions below the 50,000 threshold, FXP-A’s base rate, as provided in the initial
POST /rates/ API call, will apply.Last modified 2mo ago