Technology successfully deployed for Lynx Release Two
Deployment will support introduction of data-rich, high-value payments in Canada.
On November 5, 2022, Payments Canada successfully deployed the MX code to Lynx, Canada’s high-value payment system. This is the technology needed to introduce the ISO 20022 financial messaging standard to the Lynx system in support of release two in March 2023.
During deployment, the Lynx MX code was activated and tested with Lynx participants and the Bank of Canada. Upon completion, the code was deactivated and will remain dormant until activated in March 2023 in alignment with Swift’s revised implementation date.
Lynx is being implemented in two releases. The first release launched in the summer of 2021 and included new technology (application and infrastructure) and a new risk model that complies with Canadian and international risk standards. It was launched with Swift MT payment messages (the same messages used by the Large Value Transfer System, Lynx’s predecessor).The second release introduces the ISO 20022 financial messaging standard with the implementation of the Lynx MX payment messages, a new set of ISO 20022-enabled payment messages that will co-exist and eventually replace the existing MT messages.
Once fully implemented, Lynx Release Two will set the foundation for payment innovation to occur in Canada. The introduction of the ISO 20022 financial messaging standard will allow richer data to travel with each payment. Additional data such as purchase order details and invoice reference numbers traveling with each payment will allow for increased automation and the digitization of manual and paper-based processes currently required to support payment reconciliation and exception handling.
The introduction of ISO 20022 to Canada’s high-value payment system will assist Canadian financial institutions in meeting Swift’s ISO 20022 migration for cross-border payments and reporting (CBPR+). This will simplify cross-border payments as ISO 20022 is increasingly adopted around the world. The MX payment messages that have been defined for use in Lynx are aligned and interoperable with CBPR+.
We look forward to bringing the benefits of ISO 20222 to Canadians through Lynx, our country’s high-value payment system, at the same time as the global payment community in 2023. To learn more about ISO 20022 and Lynx, please watch our Payments Academy video series.
