Exploring the volatility of payment transactions in Canada’s payment systems

Payments Canada has released its latest discussion paper, Modelling and forecasting the volatility dynamics of payment transactions in Canada’s payment systems.

In this paper, total payment volume and value from the Large Value Transfer System (Lynx’s predecessor) and the Automated Clearing Settlement System (ACSS) are analyzed on a weekly, monthly and quarterly basis to predict the degree of fluctuation in payment transactions cleared and settled in Canada’s payment systems. Understanding fluctuations in payment volume and value helps identify potential risks (including credit risk, liquidity risk, and operational risk).