LVTS will gradually change the way Canadians do business.
LVTS can transfer Canadian dollar payments between LVTS participants anywhere in Canada, in a matter of seconds.
As a result, LVTS payments are final and irreversible.
Moreover, because of the real-time risk controls and certainty of settlement on a same-day basis, LVTS will greatly reduce systemic risk - the risk that the failure of one financial institution to meet its payment obligations will cause one or more other financial institutions to fail.
The LVTS will help Canadian corporations to compete globally by ensuring the immediate and reliable transaction of national and international payments.
Before the LVTS was put in place, Canadian banks settled billions of dollars in payments by using a combination of paper checks and wire transfers.
The LVTS has two types of transactions: actual payments, and queries and messages relating to the payments.
Security becomes an issue when CPA members query the LVTS database, which is stored on a mainframe system.
If unauthorized people gained access to the LVTS system, they could cause an enormous amount of trouble,' says Fredda Cole, LVTS program manager.
The' new systems protect the LVTS database queries, commands, and responses.
Therefore, it is very important that external vendors involved with LVTS
have established track records.