Managing Liquidity as an SAP

FXPs are responsible for managing their own account balances at SAPs, and ensuring they are always able to process payments. FXPs who have active rates must hold sufficient funds to honour payments against those rates.

SAPs are responsible for managing their own liquidity in the IPS to ensure that payments on behalf of their client FXPs can always be made. This is especially important for those SAPs that act in markets which are not balanced (i.e. more incoming than outgoing flows) as the SAP (in its role as D-SAP) may be faced with net liquidity flows from itself to other D-PSPs.

For the Source SAP, specific attention needs to be placed on the processing of settlement reversals when the S-IPS has settled the transaction before the transaction is processed in the D-IPS, but the transaction subsequently gets rejected by the D-IPS. In this particular case, the settlement in the S-IPS is reversed and the S-SAP is faced with outgoing liquidity.

Notifications to FXPs

Nexus will support FXPs to manage their liquidity by sending a notification to FXPs immediately after each successful payment is processed (specifically, after Nexus receives a pacs.002 with either ACCC , ACWP or ACWC statuses). These notifications allow the FXP to update their internal records (see the FX Provision Guide for more details). (An FXP could opt out of receiving these notifications if it prefers to use other methods of tracking its liquidity.)

The SAP is not responsible for sending notifications to the FXP, but may do so separately if they wish.

In the case where both Nexus and the SAP send a notification to the FXP, it is possible for the FXP to receive multiple notifications referencing the same transaction; for this reason both Nexus and the SAP should ensure that any notifications reference the UETR of the underlying payment

Managing liquidity when markets are closed

As Nexus payments can be made 24/7, including weekends, SAPs must ensure that their liquidity management considers payment flows that may occur out of normal business hours.