Modernization Hub

Modernization and Improvement
The Director’s Cut – Mike Hoganson, Director, Modernization, Lynx

The Director’s Cut – Mike Hoganson, Director, Modernization, Lynx

hello everyone welcome back to director’s cut my name is Yan club hour and I hope you are enjoying this beautiful summer we certainly are but we are also very busy so today I would like to talk about links which is our new system replacing the large value transfer system LD TS and DL BTS is a very important system because it’s something I call a backbone of our financial infrastructure it’s processing wire payments high value payments settling other infrastructures just to give you a sense we have around three million Canadian dollars going through the system every second so the replacement is definitely not a small job and I’m happy to have my Hogenson here with me and Mike is actually leading the links pillar to replace how ETS hi Mike hi Anne so what’s the what’s the latest and greatest on links well we’ve been busy very busy over the last few months coming out of the end of last year when we decide obviously we needed to replace our high value system and we’ve come out with the the branding on links we started the procurement process earlier this year and we started looking at requirements and defining what is it that we want the solution to deliver to us and we went out and selected three suppliers we invited them to come as part of our process that we define competitive dialogue is their procurement process and we’ve been working very closely with them and with the full member financial institutions over the course of the of the last eight months so any learnings or what surprised you some really interesting stuff I think it’s part and parcel of the way we’ve designed the competitive dialogue process it’s kind of an iterative and agile procurement process where we’re able to bring the suppliers in fairly early in the process and really learn from their experience leverage their expertise to help us define what some of those requirements would be for links and look at thinking about things like implementation strategies adoption of 20022 and that’s really helped to inform and help us shape the requirements as we’ve moved through this process and I know ts is a bit unique comparing to other countries and we are proud of having Cal DTS but I assume as we are looking into existing products and leveraging what’s already on the market the intention is to maybe move away from some of this uniqueness and become more aligned with with the other jurisdictions yeah that’s true the market has really evolved when we think about when every test was put in in 1999 there weren’t as many suppliers there weren’t as many solutions available to us and the products and solutions have really matured over the years and obviously a number of central banks our system operators are looking at replacing their high-value system and we’re gonna be able to benefit from that because as the product has matured they’ve introduced new capabilities new functionalities and those are really the types of things that we’re looking to to leverage and build upon because there will be some pieces that we’re gonna need that will still be custom elements to support what we what we require but we’re gonna be able to leverage I think all quite a bit of what’s been put in place in in other jurisdictions because obviously there’s a lot of consistency in terms of the processing of high-value payments from from jurisdiction to jurisdiction so you mentioned that there are other countries which are thinking about replacing or modernizing their RTGS infrastructure I know you are in touch with with the UK Europe Japan and even fed what are kind of the key topics are we talking and thinking about the same things or what are the emerging themes yeah there’s definitely a number of themes that there are emerging that we’re looking at that really apply across jurisdictions the application and introduction of new standards when we think about iso 20022 that’s really a key piece there’s a lot obviously from a an interoperable interoperability perspective on the global markets with wire payments so we want to make sure that we’re moving in lockstep with other jurisdictions thinking about how we transition from all systems to new systems there’s definitely some some learnings there and thinking about different ways around which we can dress and meet the regulatory standards and requirements thinking about resiliency security those are obviously first and foremost for any high-value system because it really is the foundation it’s the heart of the of the economy and in those jurisdictions and then there’s a couple other things we’re thinking about you know in terms of expanded access and looking at expanding hours of operation and and those are somewhat unique to each jurisdictions but I think there’s definitely learnings and discussions that we need to have with our colleagues thank you so keep up the great work with the team and for you if you have any comments feedback input as always please don’t hesitate to reach out and take care for now I don’t see anything from here except for that big way

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