Examining the Trade-Off between Settlement Delay and Intraday Liquidity in Canada's LVTS: A Simulation ApproachThe author explores a fundamental trade-off that occurs between settlement delay and intraday liquidity in the daily operation of large-value payment systems (LVPS), with specific application to Canada's Large Value Transfer System (LVTS).
March 1, 2006
This paper provides a comprehensive overview of Canada’s Large Value Transfer System (LVTS). The LVTS is a real-time electronic system for handling large-value payments and is an integral component of the country’s financial system. Each day, approximately Can$140 billion in payments is sent through the LVTS, including payments used to settle other important clearing and settlement systems in Canada.