Large Value Transfer System - LVTS

AAA

DEFINITION of 'Large Value Transfer System - LVTS'

An electronic wire payment system in Canada, facilitating the transfer of funds between large financial institutions, including the central Bank of Canada.

INVESTOPEDIA EXPLAINS 'Large Value Transfer System - LVTS'

LVTS transactions can be performed for banks or their clients. These transactions are instant, which improves the quickness and efficiency of business transactions. Once the transaction is sent through the system, it can not be reversed. This prevents insufficient funds, stop payments and fraud.

For example, because financial institutions borrow and lend money to each other, at the end of the day some firms have a shortage of money, while other firms have an excess amount. They use the LVTS to close out these short and long positions.

RELATED TERMS
  1. Wire Transfer

    An electronic transfer of funds across a network administered ...
  2. Financial Intermediary

    An entity that acts as the middleman between two parties in a ...
  3. Long (or Long Position)

    1. The buying of a security such as a stock, commodity or currency, ...
  4. Transfer

    A change in ownership of an asset, or a movement of funds and/or ...
  5. Short (or Short Position)

    1. The sale of a borrowed security, commodity or currency with ...
  6. Asset Management and Disposition ...

    A type of contract between the Federal Deposit Insurance Corporation ...
Related Articles
  1. Canadian Grants And Tax Credits Fund ...
    Savings

    Canadian Grants And Tax Credits Fund ...

  2. Tax-Free Accounts Make Saving A Snap ...
    Taxes

    Tax-Free Accounts Make Saving A Snap ...

  3. Is a Canadian resident allowed to participate ...
    Investing

    Is a Canadian resident allowed to participate ...

  4. Registered Retirement Savings Plans ...
    Taxes

    Registered Retirement Savings Plans ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center