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.

RELATED TERMS
  1. Wire Transfer

    An electronic transfer of funds across a network administered ...
  2. Bank Wire

    An electronic message system allowing major banks to communicate ...
  3. Telegraphic Transfer - TT

    An electronic method of transferring funds. Telegraphic Transfers ...
  4. Bank Of Canada - BOC

    The central bank of Canada, that came into existence after the ...
  5. Financial System

    A financial system can be defined at the global, regional or ...
  6. Email Money Transfer - EMT

    A retail banking service that allows users to transfer funds ...
Related Articles
  1. Insights

    Inside National Payment Systems

    Investopedia explains: The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
  2. Investing

    Best Ways to Send Large Sums of Money Abroad

    Understand why it may be difficult to send large sums of money internationally. Learn about the top five ways to send large sums of money abroad.
  3. Trading

    The Canadian Dollar: What Every Forex Trader Needs To Know

    Canada is becoming an increasingly viable alternative to the U.S. dollar, making it more important in the forex market.
  4. Trading

    Basics Of The Mechanics Behind Electronic Trading

    What was once associated with shouting traders and wild hand gestures has now become more closely associated with statisticians and computer programmers.
  5. Investing

    3 Reasons Canada's Economy Matters in 2016

    Discover why Canada's 2015 recession matters and why the United States is particularly dependent on a healthy Canadian economy.
  6. Investing

    The Top 3 ETFs For Investing in Canada

    Learn specific information about three of the most popular and best performing ETFs that offer exposure to Canadian equity markets for U.S. investors.
  7. Small Business

    How Digital Payments Will Change Commerce in 2016

    The way we transfer and spend money is constantly evolving, and 2016 is poised to expand digital payments like we've never seen before.
  8. Retirement

    5 Reasons to Retire in Canada

    From proximity to the U.S. to affordable healthcare, there are at least 5 great reasons to consider moving to Canada for retirement.
  9. Insights

    The 3 Biggest Canadian Banks (RY, TD)

    Examine some of the largest banks in Canada, which also rank among the largest and most important banks in the industry worldwide.
  10. Insights

    The Canadian Economy, At A Glance

    The 12 economic indicators described here together provide a comprehensive picture of the state of the Canadian economy.
RELATED FAQS
  1. How does the landscape of the financial services sector in the U.S. compare to Canada?

    Read about the financial services sector in the United States and Canada, two countries that represent each other's largest ... Read Answer >>
  2. How liquid are BlackRock mutual funds? (BLK)

    Discover if BlackRock mutual funds are liquid. Learn about the available payment options and how long it takes for a payment ... Read Answer >>
  3. Who decides to print money in Canada?

    Discover how the Bank of Canada and chartered banks in the country can create new money, and how creating new money causes ... Read Answer >>
  4. Is Canada a developed country?

    Find out how Canada fares as a developed country, boosted by its economic strength and a strong standard of living for Canadian ... Read Answer >>
  5. What are the major categories of financial institutions and what are their primary ...

    Understand the various types of financial institutions that exist in today's economy, and learn the purpose each serves in ... Read Answer >>
Trading Center