Automated Clearing Settlement System (ACSS) and Lynx rule amendments enhance efficiency and clarity

Rule amendments take effect on July 11, 2023. Recently approved amendments to ACSS and Lynx rules, summarized below, aim to improve various aspects of the payment systems and support their efficient use and operation.

The rule amendments take effect on July 11, 2023. Proposed rule amendments are developed through comprehensive consultation with relevant Payments Canada working groups and shared with the Bank of Canada and the Minister of Finance. Amendments are approved by the Board of Directors.

Approved rule amendments

1. Accommodate Image Captured Payment (ICP) exchange of government paper instruments (ACSS Rule G3)

The implementation of Image Captured Payment (ICP) exchange for government paper instruments with various financial institutions prompted the need to update Rule G3, which addresses the redemption and return of government paper instruments. The approved amendments to Rule G3 include the inclusion of image-related definitions. Return timeframes have also been added to align with Rule A10. 

2. Improved clarity of Indirect participation in the EDI environment (ACSS Rule E3 and Introduction to the ACSS Rules)

Rule E3 outlines the procedures for the exchange of Electronic Data Interchange (EDI) payment items between financial institutions. Recent onboarding of a new direct clearer highlighted the need for clarification regarding the definition of "indirect participant" and direct clearers’ use of representative arrangements in the EDI environment.

The approved amendments to Rule E3 clarify definitions of certain terms to reflect the use of representative arrangements by direct clearers. The registration procedures for both direct and indirect participants have also been clarified.

3. Update cross-border arrangement notification requirements (ACSS Rule C1 and Lynx Rule 15)

ACSS Rule C1 and Lynx Rule 15 – the rules pertaining to cross-border arrangements for the ACSS and Lynx, respectively – require participants to notify Payments Canada of any changes to authorized personnel accessing the systems 30 days in advance of a change. However, meeting this requirement can be challenging when employees leave the organization or change roles with less than 30 days' notice. To align with members' current practices, Payments Canada proposes updating the notification requirements.

The approved amendments to ACSS Rule C1 and Lynx Rule 15 will now require notice of changes within 30 days of the change coming into effect, rather than 30 days before, as long as the change occurs within the same jurisdiction.

4. Streamlined Lynx contingency measures (Rule 12 and TSP-002)

The approved amendments to Rule 12 and TSP-002 point participants to the appropriate contingency plans in the event of a Swift disruption. TSP-002 reflects the option of using the Lynx Web Client for making single or multiple payments. The contingency plans provide further information on these procedures.

Payments Canada’s rules and standards are critical components of our clearing and settlement systems and are amended regularly in support of system changes and process improvements. Visit the Payments Canada Rules Centre for more information on active rules that govern Canada’s payment systems.

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