Canadian Payments Association By-law No. 10 — RTR (SOR/2026-133)

Marginal note:Revocation by Board

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  13 (1) The Board may revoke a member’s approval to be a participant in the RTR system if

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    (a) in the case of a direct settlement participant, the member no longer has access to its settlement account;

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    (b) in the case of an indirect settlement participant, the member does not have a designated settlement agent who may act on its behalf; or

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    (c) the member no longer meets the technical, operational, security, settlement account funding or testing requirements set out in the Rules.

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  Marginal note:Prior notice to Bank

  (2) Before making a revocation, the Board must provide the Bank with notice of the intention to make the revocation.

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  Marginal note:Notice by President

  (3) After the Board makes a revocation, the President must

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    (a) without delay, notify the member of the revocation; and

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    (b) as soon as feasible, notify all participants of the revocation.

Marginal note:Application

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  14 (1) A participant whose permission to participate in the RTR system is suspended under section 9 or 10 or a member whose approval to be a participant in the RTR system is revoked under section 13 may, in the form and manner set out in the Rules, make an application to the President to have that permission or approval reinstated.

• The following provision is not in force.

  Marginal note:Reinstatement

  (2) The President must reinstate the permission or approval if the application demonstrates that the circumstances giving rise to the suspension or revocation no longer exist.

Marginal note:Notice of withdrawal

15 A participant may cease to be a participant in the RTR system by providing a notice of withdrawal to the President in the form and manner set out in the Rules.

Marginal note:Application

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  16 (1) A direct settlement participant who is not subject to a suspension under any of sections 9 to 11 may, in the form and manner set out in the Rules, make an application to the President for approval to clear and settle RTR payment obligations in RTR Clearing and Settlement on behalf of indirect settlement participants.

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  Marginal note:Approval criteria

  (2) The President must approve the application if the direct settlement participant demonstrates that

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    (a) it has established a settlement account for use in relation to its activities as a settlement agent and, if the participant is other than the Bank, has entered into agreements with the Bank in respect of that account;

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    (b) it has met the technical, operational, security, settlement account funding and testing requirements set out in the Rules that are applicable to settlement agents; and

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    (c) it has paid the fees applicable to settlement agents set out in the by-laws and the Rules.

Marginal note:Suspension — access to settlement account

17 The President must suspend an approval provided under section 16 if the Bank notifies the President that the direct settlement participant no longer has access to the settlement account referred to in paragraph 16(2)(a).

Marginal note:Suspension — other

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  18 (1) The President may suspend an approval provided under section 16 if the direct settlement participant

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    (a) no longer meets the technical, operational, security, settlement account funding or testing requirements set out in the Rules that are applicable to settlement agents; or

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    (b) fails to pay a fee that is applicable to settlement agents set out in a by-law or the Rules.

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  Marginal note:Prior notice to Bank

  (2) Before making a suspension, the President must provide the Bank with notice of the intention to make the suspension.

Marginal note:Notice to participants

19 After making a suspension under section 17 or 18, the President must

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  (a) without delay, notify the direct settlement participant that its approval under section 16 is suspended; and

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  (b) as soon as feasible, notify all other participants of the suspension.

Marginal note:Revocation by Board

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  20 (1) The Board may revoke an approval provided under section 16 if the direct settlement participant

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    (a) no longer has access to the settlement account used in relation to its activities as a settlement agent;

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    (b) no longer meets the technical, operational, security, settlement account funding or testing requirements set out in the Rules that are applicable to settlement agents; or

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    (c) fails to pay a fee that is applicable to settlement agents set out in a by-law or the Rules.

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  Marginal note:Prior notice to Bank

  (2) Before making a revocation, the Board must provide the Bank with notice of the intention to make the revocation.

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  Marginal note:Notice by President

  (3) After the Board makes a revocation, the President must

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    (a) without delay, notify the direct settlement participant that its approval under section 16 is revoked; and

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    (b) as soon as feasible, notify all participants of the revocation.

Marginal note:Application

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  21 (1) A direct settlement participant whose approval under section 16 is suspended under section 17 or 18 or revoked under section 20 may, in the form and manner set out in the Rules, make an application to the President to have that approval reinstated.

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  Marginal note:Reinstatement

  (2) The President must reinstate the approval if the application demonstrates that the circumstances giving rise to the suspension or revocation no longer exist.

Marginal note:Designation of settlement agents

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  22 (1) Subject to subsection (6), an indirect settlement participant must, in accordance with the Rules, designate

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    (a) for the RTR Exchange, one settlement agent to act on its behalf in respect of RTR payment obligations set out in RTR payment messages; and

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    (b) for each third-party exchange in which it exchanges payment messages, one settlement agent to act on its behalf in respect of RTR payment obligations set out in those payment messages.

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  Marginal note:Multiple designations

  (2) A settlement agent may be designated in respect of more than one payment exchange referred to in subsection (1).

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  Marginal note:Identification of payment exchange

  (3) The designation must identify each payment exchange in respect of which it is made.

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  Marginal note:Prior notice

  (4) A settlement agent must, for each payment exchange in respect of which the designation is made, provide written notice to the Association, in the form and manner set out in the Rules, before acting for the first time on behalf of the indirect settlement participant in respect of the payment exchange.

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  Marginal note:New designation required

  (5) The indirect settlement participant must designate a new settlement agent for a payment exchange if

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    (a) the current settlement agent for the payment exchange has its designation terminated under section 24 or notice to terminate that designation is provided under subsection 25(1); and

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    (b) the designation is for the RTR Exchange or a third-party exchange in which the indirect settlement participant intends to continue to exchange payment messages.

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  Marginal note:Termination under section 25

  (6) In the case where notice to terminate the current settlement agent’s designation is provided under subsection 25(1) and a new settlement agent must be designated in accordance with subsection (5), designation of the new settlement agent must be made before the day on which the current settlement agent’s designation is terminated.

Marginal note:Identified payment exchanges

23 A settlement agent may only act on behalf of an indirect settlement participant in relation to a payment exchange identified by the indirect settlement participant in its designation made under section 22.

Marginal note:Termination

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  24 (1) All designations made under section 22 in respect of a settlement agent are terminated if the settlement agent is, in its capacity as a direct settlement participant or a settlement agent, subject to

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    (a) a suspension under any of sections 9 to 11, 17 or 18; or

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    (b) a revocation under section 13 or 20.

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  Marginal note:When termination occurs

  (2) The designations are terminated at the time at which the suspension or revocation is made.

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  Marginal note:Settlement agent — effect of termination

  (3) A settlement agent must not act on behalf of an indirect settlement participant after its designations are terminated under this section.

Marginal note:Termination

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  25 (1) An indirect settlement participant or settlement agent who wishes to terminate a designation made under section 22 must, in accordance with the Rules, provide written notice that the designation is to be terminated to the Association and the indirect settlement participant or settlement agent, as the case may be.

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  Marginal note:When termination occurs

  (2) The designation is terminated on the earlier of

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    (a) the day on which the notice period specified in the Rules ends; and

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    (b) one of the following days, as applicable:

    • (i) in the case where a new settlement agent is designated under section 22, the day on which the new settlement agent begins to act on behalf of the indirect settlement participant,

    • (ii) in any other case, the day agreed to by the indirect settlement participant and the current settlement agent.

Marginal note:Settlement agent must continue to act

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  26 (1) Subject to subsections (2) and (3), a settlement agent must continue to act on behalf of the indirect settlement participant until the day on which its designation is terminated under section 25.

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  Marginal note:Exceptions

  (2) Subject to subsection 39.15(3.1) of the Canada Deposit Insurance Corporation Act, a settlement agent may immediately cease to act on behalf of an indirect settlement participant if

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    (a) the settlement agent reasonably believes that the indirect settlement participant poses a legal, financial or operational risk to the settlement agent; or

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    (b) the indirect settlement participant has breached a substantial term of an agreement entered into with the settlement agent for the purposes of clearing and settlement.

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  Marginal note:Exception

  (3) A settlement agent must immediately cease to act on behalf of an indirect settlement participant during any period of time that the indirect settlement participant is subject to a suspension under any of sections 9 to 11 or to a revocation under section 13.