Compulsory Assignment n 1

Compulsory Assignment n°1
Money Transfer systems

Francois Castonguay

Money & Banking
Professor D. Otchere

L.V.T.S (Large Value Transfer system)
The L.V.T.S (Large Value Transfer System) is a Canadian currency electronic funds transfer system that allows financial institutions and their customers to settle secure, time-sensitive and large-value payments. There are currently sixteen institutions participating in the Large Value Transfer System, including the Canadian Government and Bank of Canada. In 2012, it processed an average of 27’900 payments for an average total worth of over $150B CAD, daily. It is most secure as its safety is legally under the responsibility of the Bank of Canada. The Bank of Canada also guarantees the settlement of payments in case where more than one participant fails during the LVTS operating day and that this fail represents more than the value of collateral pledged to the Bank of Canada, even though it is incredibly improbable. Finally, The LVTS is actually leaving electronic trails of their transactions. (Bank of Canada, ????) (Canadian Payments association, 2013)

CHIPS (Clearing House Interbank Payment system)
CHIPS is the largest U.S. currency funds-transfer system in the world. As an example, in 2012, CHIPS processed an average of $1.5 trillion in foreign and domestic payments daily. CHIPS operates on a global business day and uses a sophisticated liquidity savings mechanism to provide fast and final payments. It is pretty much the equivalent of the L.V.T.S for the institutions that use the U.S. Dollar. Chips is operated by The Clearing House; the oldest banking association and Payments Company in the United States. It is also directly linked and subject to supervision and examination from the Federal Reserve. This transfer system also leaves electronic tracks of their transactions. (Federal Reserve, 2014) (The Clearing House, 2014)

SWIFT (Society for worldwide interbank financial telecommunications)
SWIFT is a

References: Bank of Canada, (????). Large Value Transfer System (LVTS). Bank of Canada, Retrieved from: http://www.bankofcanada.ca/core-functions/monetary-policy/lvts/ Bank of Canada, (????). Large Value Transfer System (Backgrounder). Bank of Canada, Retrieved from: http://www.bankofcanada.ca/wp-content/uploads/2010/11/large_value_transfer_system.pdf Canadian Payments Association, (2013). Large Value Transfer System. Canadian Payments Association, Retrieved from: https://www.cdnpay.ca/imis15/eng/FAQs/Large_Value_Transfer_System/eng/faq/Large_Value_Transfer_System.aspx?hkey=4163852d-6463-421a-b239-f31e01646b21#bm05 Federal Reserve, (2014).Oversight of Key Financial Market Infrastructures. Federal Reserve. Retrieved from: http://www.federalreserve.gov/paymentsystems/over_pssystems.htm The Clearing House, (2014). About Chips. The Clearing House Retrieved from: https://www.chips.org/about/pages/033738.php J.P. Morgan, (????). Understanding SWIFT for corporates. J.P. Morgan treasury services Retrieved from: https://www.jpmorgan.com/cm/BlobServer/Swift_For_Corporates.pdf?blobkey=id&blobwhere=1320633877670&blobheader=application/pdf&blobheadername1=Cache-Control&blobheadervalue1=private&blobcol=urldata&blobtable=MungoBlobs SWIFT, (????). Interbank payments for correspondent banking. SWIFT. Retrieved from: http://www.swift.com/products_services/by_customer/banks/interbank_payments Jost, M. P., (????) The Hawala Alternative Remittance System and its Role in Money Laundering. U.S. Department of the Treasury Retrieved from: http://www.treasury.gov/resource-center/terrorist-illicit-finance/documents/fincen-hawala-rpt.pdf Cox, K., (2014) Bitcoin: What The Heck Is It, And How Does It Work? Consumerist Retrieved from: http://consumerist.com/2014/03/04/bitcoin-what-the-heck-is-it-and-how-does-it-work/ Davis, J., (2011) The Crypto-Currency. The New Yorker Retrieved from: http://www.newyorker.com/magazine/2011/10/10/the-crypto-currency