Lynx

Canada's high value payment system, electronic wire system used by participating financial institutions to safely send wire payments on behalf of their customers in canadian dollars

Four criteria of Lynx

Maintain a settlement account at the Bank of Canada, have the facilities to pledge collateral to the Bank of Canada for Lynx purposes, member of swift, meet certain tech requirements set out in the Lynx rules

Key players of Lynx

Payments Canada, Swift, Lynx participants, Bank of Canada, and the Minister of Finance

Payments Canada

the owner and operator of Lynx

Swift

financial message service provider for Lynx

Lynx participants

Payments Canada members who directly participate in Lynx

Bank of Canada

has oversight responsibility for the core payment systems that Payments Canada owns and operates, including Lynx

Minister of Finance

has oversight powers with respect to Payments Canada and payment systems under the Canadian Payments Act.

Wire payments don't include

client information, account or transit numbers

Fedwire Funds Service

the premier electronic funds-transfer service that banks, businesses and government agencies rely on for mission-critical, same day transactions.

FedPayments Manager

Funds application, a web-based solution, gives credentialed users access to manually create or import/upload a file for processing

Fedline Direct Solution

Unattended real-time computer-to-computer access for higher-volume message processing

FedTransaction Analyzer

Enables financial institutions to automate and standardize after-the-fact analysis of Fedwire Funds Service transactions

Input Message Accountability Data (IMAD) and Output Message Accountability Data (OMAD)

Confirmation that the wire payment was sent succeesfully

camt.110

wire payment was recieved and funds were credited to the creditor

camt.056

request a wire payment be returned

CHAPS

sterling, largest high-vale payment systems that is used to settle high-value wholesale payments as well as a time critical, lower-value payments. England based

Requirements for CHAPS

hold an account at the BANK, be a participant within the definition set in 1999, if outside of Engalnd and Wales the provide info about company status and settlement finality through a legal opinion, comply with the tech and operational requirements

types of Cost for Direct Access to CHAPS

one-off set-up costs, ongoing costs, opportunity costs of providing collateral or holding liquid assests; hardward and software maintenance and higher staffing costs, vocalink charges, SWIFT tariff fees and charges for CHAPS payments and advice messages, Regulatory fees, hardware and software costs

Clearing

the process of transmitting, reconciling, and in some cases, confirming payments orders or financial instrument transfer instructions prior to settlement

Settlement

the final step in the transfer of ownership involving the physical exchange of securities or payment

Gross Settlement

the settlement of each transfer individually rather than netting

Net Settlement

a system in which banks continually send payment instructions over a period of time, with final transfer occurring at the end of the processing cycle. During the period, a record is kept of net debit and credits