The Canadian Payments Association By-law No. 9 — Lynx, was published in the Canada Gazette on August 18, 2021 and sets out the rights and responsibilities of Payments Canada, the Bank and Lynx Participants.
Some of the key provisions relate to:
Approval criteria: Candidates must, among others, (i) be a member of Payment Canada, (ii) have a settlement account at the Bank of Canada, and (iii) meet the technical and testing requirements test.
Connectivity: Lynx participants must connect to Lynx every business day unless technical difficulties prevent them from connecting.
Collateral: Participants other than the Bank must pledge collateral and the Bank must, before the beginning of the payments processing cycle every business day, assess the value of that collateral.
Settlement: with specific requirements relating to (i) financial message service provider, (ii) extraction of settlement instructions by participant, and (iii) settlement instructions sent to settlement mechanism.
The By-law came into force on August 28, 2021 except for certain sections including the section related to the repeal of By-law No. 7 - Large Value Transfer System, that will come into force on June 1, 2022.