Large Value Transfer System

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Large Value Transfer System

An electronic system allowing Canadian banks to transfer large amounts of funds instantaneously. The banks may use the LVTS on behalf of clients, but perhaps the most common usage is the transfer of funds for short-term loans between banks, including the Central Bank of Canada. Importantly, LVTS transfers are irreversible so as to reduce the possibility of fraud and other risks.
References in periodicals archive ?
More specifically, since most LVPSs closely resemble the TARGET model, why are Fedwire and LVTS so different?
The main difference between LVTS and standard RTGS systems such as TARGET is that LVTS can send tranche 2 payments, which require much less collateral.
With only 14 participants in LVTS, setting up and monitoring bilateral lines of credit with all other participants is relatively easy.
And it has discussed who bears the settlement risk--the central bank in the case of Fedwire or LVTS and creditors of payment system participants in the case of TARGET.
The LVTS will help Canadian corporations to compete globally by ensuring the immediate and reliable transaction of national and international payments.
Scotiabank welcomes the implementation of the LVTS in Canada.
While Canadians have always enjoyed a safe and secure payment system due to the soundness of their financial institutions, the launch of LVTS improves on this by providing complete assurance that payments will be final and irrevocable on a same-day basis.
LVTS, with its risk reduction features of guaranteed settlement and finality of payment, enhances the acceptability of the Canadian Dollar in world markets.
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.
To provide the security the LVTS needs, we felt we had to use a state-of-the-art solution,' Cole says.
Luna2, a high-performance encryption coprocessor in a PC Card format, provides security for individuals in LVTS organizations.