Thank you, Chair.
Under the Payment Clearing and Settlement Act, the Bank of Canada has responsibility for overseeing clearing and settlement systems. These are the core payment infrastructure that banks, for example, use to settle payments among themselves. Under the act, the Governor of the Bank of Canada can designate a payment system if it poses a systemic risk or a risk to Canadian payment systems.
As these systems evolve, the various functions of exchange, clearing and settlement are becoming different functions. These amendments to the Payment Clearing and Settlement Act will clarify the Bank of Canada's authority to designate payment exchanges in order to oversee the risks. There are, however, no additional exceptions in terms of compensation as part of these amendments.