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Does my XG need to be a send connector on Exchange for SPX encryption to work?

I am trying to setup and test SPX encryption. If I understand it correctly, my users should be able to click the Encrypt button in the Outlook add-in, then the email will be encrypted by the XG and the sender will receive a one-time password which they can tell to the recipient over the phone?

However, after configuring the SPX policy and assigning this to the main MTA email policy for SMTP it does nothing. Clicking the Encrypt button in Outlook doesn't affect the email and it is delivered to the recipient unchanged.

Am I supposed to add the XG to Exchange as a send connector? This would be under Hub Transport > Send Connectors > SMTP (name of connector) > Network tab? At present, all outbound traffic is allowed through the XG so email just leaves directly without interference.

Thanks

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