Large Value Transfer System - LVTS


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.

BREAKING DOWN '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.

  1. Short (or Short Position)

    A short position is the sale of a borrowed security, commodity ...
  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. Wire Transfer

    An electronic transfer of funds across a network administered ...
  6. Remittance

    The term most commonly refers to money being sent via mail or ...
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