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The CPA plays a pivotal role in Canada's financial system by providing safe clearing and settlement systems for member FIs. Clearing involves reconciling payment items between institutions, while settlement is the payment of clearing balances. The ACSS monitors retail payments exchanged between Canadian FIs and calculates net amounts owed daily for settlement. This process prepares for settlement at the Bank of Canada through the LVTS. The CPA establishes a common framework for managing systems and operations.