Presentations

Presentation "Introduction of LVTS in Canada", C. Goodlet, May 1999.
Summary The LVTS is a real-time, electronic transfer system that processes large-value or time-critical payments continuously throughout the day. The system began operations on February 4, 1999. The presentation discusses: the motivation in building the LVTS; some design features of the LVTS, including measures to reduce risk; the use of collateral; and some issues that have arisen since the start-up of the LVTS. The presentation also discusses how the LVTS, which is a multilateral deferred net settlement system, achieves the same desirable outcomes (such as intraday finality of payment) that are provided by a well-designed RTGS system, but with relatively lower collateral costs.

Presentation "International Branches and the Canadian Payments System - LVTS and Other Key Issues", C. Freedman, 29 March 1999.
Summary The presentation provides an overview of the Large Value Transfer System (LVTS) and the Payment Clearing and Settlement Act. This is followed by a discussion of the new legislation which allows foreign banks to branch directly into Canada and the issues that this raises regarding the direct participation of foreign bank branches in the LVTS. Matters of particular concern include the legal issues pertaining to potential choice of law and conflict of law problems in the event of the insolvency of a foreign bank branch that is a direct participant in the LVTS. The presentation then examines how these concerns have been addressed.

Presentation "The Canadian Payments System: Recent Developments in Structure and Regulation", C. Freedman and C. Goodlet, May 1998.
Summary The presentation describes the principal risks that can arise in clearing and settlement systems. There is a discussion of the public policy objectives in clearing and settlement systems and the efficiency/safety trade-offs involved in the design of such systems. The development and design of the Large Value Transfer System (LVTS) is described, including its risk-control structures. Finally, the Payment Clearing and Settlement Act and the role of the Bank vis-a-vis large value clearing and settlement systems is examined.