A system of building a hierarchy in a PNNI based ATM network utilizing one or more proxy SVCC-based RCC entities. The invention separates the routing, signaling, etc. functions from the functions required to be performed by the peer group leader and the logical group node. A dedicated computing platform is connected to the network but does not perform functions related to routing, signaling, etc. Rather, it is dedicated to running peer group leader and logical group node functions, including complex node representation (summarization calculations) of the child peer group. The dedicated computer has PVCs connecting it to one or more entities that are termed `proxy SRCC` nodes. The proxy SRCC nodes perform the SRCC functionality on behalf of the dedicated computer. When the border nodes in the peer group run the Hello FSM over outside links they each advertise the closest proxy SRCC entity, which is themselves. The border nodes on the other side of the outside link are operative to then generate an uplink with the advertised address of the proxy SRCC. The logical group nodes then establish RCC SVCCs to one of the proxy SRCCs. The PNNI routing messages are relayed from the proxy SRCC to the dedicated computer peer group leader/logical group node via a previously established PVC.