The Large Value Transfer System, or LVTS, is a system in Canada for electronic wire transfers of large sums of money; it permits the participating institutions and their clients to send large sums of money securely in real-time with complete certainty that the payment will settle. LVTS processes the majority of payments made every day in Canada, and is designed to work with funds in Canadian dollars (CAD). On a normal business day, it clears and settles approximately CAD $153.5 billion. Frequently, when settling the payments made through LVTS between each other, some banks find themselves with extra funds, while others find themselves short; to come up with money, the banks can borrow it from each other for a day, or “overnight”. The rate at which they borrow is called overnight rate, targets for which are set by the Bank of Canada as part of its monetary policy.
LVTS is a real-time payment system: the recipient of the payment receives it irrevocably in near real-time, but it settles on a deferred net basis at the end of each day, so it is not a real-time gross settlement system.
Payments Canada are developing a replacement system, Lynx.
As of 2018, there are 17 institutions, including the Bank of Canada participating in LVTS:
- Alberta Treasury Branches
- Bank of America National Association
- Bank of Canada
- Bank of Montreal
- Bank of Nova Scotia
- BNP Paribas (Canada)
- Credit Union Central of Canada
- Desjardins Group (French: Mouvement des caisses Desjardins)
- HSBC Bank Canada
- ICICI Bank Canada
- Laurentian Bank of Canada
- Manulife Bank of Canada
- National Bank of Canada
- Royal Bank of Canada
- State Street Bank and Trust Company
- Toronto-Dominion Bank
- ^“High-Value System (LVTS) Participants”. Payments Canada. 2 August 2016.
Ofer Abarbanel is a 25 year securities lending broker and expert who has advised many Israeli regulators, among them the Israel Tax Authority, with respect to stock loans, repurchase agreements and credit derivatives. Founder of TBIL.co STATX Fund.