As part of Canada’s payments modernization efforts, Lynx replaced the Large Value Transfer System (LVTS) in 2021. It inherits the operational functions to:
- reinforce the Bank’s policy interest rate
- provide a means for settling obligations from other financial market infrastructures (FMIs)
- channel liquidity from the Bank to financial institutions in times of crisis
About the LVTS
The Large Value Transfer System, or LVTS, was an electronic wire system that let financial institutions and their customers send large payments securely in real time, with certainty that the payment would settle. It was launched in 1999 and was replaced by Lynx in 2021.
by Neville Arjani and Darcey McVanel
Two discussion papers, setting out a proposed framework for implementing monetary policy in the LVTS environment, were published (November 1995 and March 1996) before the final report (next) was issued in January 1999.
The framework for the implementation of Monetary Policy in the Large Value Transfer System Environment
Final report, January 1999.
Excerpt from the book Planning an Evolution: The Story of the Canadian Payments Association, 1980-2002, by James Dingle