Functions of the Nexus Gateway

Each Gateway has two sub-components: the Nexus Instructing Party and the Nexus Interface.
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    Nexus Instructing Party (also sometimes called Technical Service Provider): This component of the Gateway acts as an Instructing Party behalf of Liquidity Providers. The NIP has authority to initiate and accept payments on behalf of those Liquidity Providers.
The local IPS will be instructed to exchange payment messages for Nexus payments directly with the Nexus Instructing Party. The Liquidity Provider will act as the Settlement Party in the IPS.
The Nexus Instructing Party needs to adhere to the admission criteria for Instructing Parties, while each Liquidity Provider must be an existing Settlement Participant in the IPS.
  1. 1.
    Nexus Interface: The Nexus Gateway also functions as an Interface (and orchestrator) towards other Nexus Gateways. It will ensure delivery to other Nexus Gateways of payment instructions and all related messaging (including acknowledgments, requests for recalls and investigation messages).
In simple terms, the Nexus Instructing Party handles the domestic part of a payment and communication between the IPS and Nexus, while the Nexus Interface handles all cross-border elements and communication between the banks involved in (setting up) a payment.
Although the roles are functionality separate, they are likely to be integrated in one technical component.
For readability purposes the Nexus Interface and Nexus Instructing Party roles are referred to as Nexus Gateway throughout this document.