On September 1, the Bank of Canada designated Canada’s high-value payment system, Lynx, as a systemically important payment system under the Payment Clearing and Settlement Act.

Pursuant to the Bank of Canada’s Criteria and Risk-Management Standards for Prominent Payment Systems, Lynx is deemed to pose systemic risk to the Canadian financial system, considering the :

• Value and volume of transactions, proxy measures for the potential to pose credit, liquidity and operational risk

• Limited availability of substitutes that is more likely to result in the event of a disruption to that system should adverse events occur

• Time criticality of payments and potential for disruption and adverse economic effects

• Centrality, or importance in the payment system and market

• Interdependencies, potentially increasing the economic effects of a disruption and extending the impact on confidence in payment systems

Lynx will be owned and operated by Payments Canada and overseen by the Bank of Canada.