Large Value Payments (LVPs) refer to high-value, time-sensitive transactions typically used for interbank settlements, financial institution transfers, and large corporate payments. These transactions are crucial for maintaining financial stability and ensuring liquidity in the banking system. They are usually processed through Real-Time Gross Settlement (RTGS) systems, which allow instant and irrevocable settlements.
Financial Market Infrastructures (FMIs) are the key systems that facilitate the clearing, settlement, and recording of financial transactions. FMIs include payment systems, central securities depositories (CSDs), securities settlement systems (SSSs), central counterparties (CCPs), and trade repositories (TRs). These infrastructures help mitigate risks, improve efficiency, and enhance the resilience of financial markets by providing secure and reliable platforms for financial transactions.
Together, LVPs and FMIs play a critical role in ensuring the smooth functioning of the financial ecosystem by enabling seamless and secure financial transactions across economies.
