Payment Clearing and Settlement Act — P-4.4 2
Definitions 2 The following definitions apply in this Act. Bank means the Bank of Canada. ( banque ) bridge clearing house means a corporation or company that is designated as a bridge clearing house under subsection 11.13(1). ( chambre de compensation-relais ) Canadian participant means a participant that is incorporated or formed under an enactment of Canada or a province. ( participant canadien ) central counter-party means a corporation, association, partnership, agency or other entity in a clearing and settlement system with whom all participant’s payment rights and obligations are netted to produce a single amount owing as between each participant and the central counter-party. ( intermédiaire ) clearing and settlement system means a system or arrangement for the clearing or settlement of payment obligations or for the exchange of payment messages for the purpose of clearing or settlement of payment obligations that meets the following conditions: (a) there are at least three participants, at least one of which is a Canadian participant and at least one of which has its head office in a jurisdiction other than the jurisdiction where the head office of the clearing house is located; (b) the clearing or settlement is wholly or partly in Canadian dollars; and (c) except in the case in which the payment obligations arise from derivatives contracts, the settlement is ultimately effected through adjustments to the account or accounts of one or more of the participants at the Bank. For greater certainty, it includes a system or arrangement for the clearing or settlement of securities transactions, derivatives contracts, foreign exchange transactions or other transactions if the system or arrangement also clears or settles payment obligations arising from those transactions or exchanges payment messages for the purpose of clearing or settlement of such obligations. ( système de compensation et de règlement ) clearing house means a corporation, association, partnership, agency or other entity that provides clearing, settlement or payment message exchange services for a clearing and settlement system. It includes a securities and derivatives clearing house , as defined in subsection 13.1(3), but does not include a stock exchange or the Bank. ( chambre de compensation ) eligible financial contract has the same meaning as in subsection 22.1(2) of the Winding-up and Restructuring Act . ( contrat financier admissible ) Minister means the Minister of Finance. ( ministre ) oversight information has the meaning assigned by the regulations. ( renseignements relatifs à la surveillance ) participant means a party to an arrangement that establishes a clearing and settlement system. ( établissement participant ) payments system risk means the risk that a disruption to or a failure of a clearing and settlement system could cause a significant adverse effect on economic activity in Canada by (a) impairing the ability of individuals, businesses or government entities to make payments, or (b) producing a general loss of confidence in the overall Canadian payments system, which includes payment instruments, infrastructure, organizations, market arrangements and legal frameworks that allow for the transfer of monetary value. ( risque pour le système de paiement ) receiver includes a receiver-manager and a sequestrator. ( séquestre ) share includes (a) a conversion or exchange privilege that is convertible at any time into a share; and (b) an option or a right to acquire a share or a privilege referred to in paragraph (a). ( action ) systemic risk means the risk that the inability of a participant to meet its obligations in a clearing and settlement system as they become due, or a disruption to or a failure of a clearing and settlement system, could, by transmitting financial problems through the system, cause (a) other participants in the clearing and settlement system to be unable to meet their obligations as they become due, (b) financial institu