T2

T2 (also referred to as RTGS) provides real-time gross settlement (RTGS) in central bank money  

Basic design functionality

• RTGS is used for the settlement of individual payments and/or ancillary system settlement.

• RTGS is multi-currency enabled, i.e. the settlement services can support settlement in different currencies, however it does not offer conversion between currencies.
• Settlement takes place at the level of RTGS Direct Cash Accounts (RTGS DCAs), which are only allowed a positive or zero balance.
• RTGS DCAs are also used for pushing/pulling liquidity from/to the Central Liquidity Management (CLM) module.
• It is possible to use sub-accounts, which must be linked to a single RTGS DCA in the context of ancillary systems settlements.
• Payment service providers and ancillary systems can participate in RTGS as direct parties (RTGS account holders) and addressable BIC holders. Multi-addressee access is also supported.

Example for the processing of a payment

1. PSP A sends via ESMIG to RTGS a credit transfer order of EUR 100 (FICT/pacs.009 or CCT/pacs.008 message) to PSP B.
2.  T2 validates, confirms and settles the payment order on the RTGS Dedicated Cash Accounts (DCAs) of PSPs A and B.
3. Τ2 sends a settlement confirmation (PSR/pacs.002 message) to PSP A (optional, subject to bilateral agreement).
4. T2 creates and forwards the payment (pacs.009 or pacs.008 message) via ESMIG to PSP B.

Features – options of payment orders

Payment priorities

A cash transfer order may be termed “urgent” – permitted only for central bank orders – or “high” priority. "Normal" is used if no priority has been chosen (default). Processing of the payment is carried out according to the First-in First-out (FiFo) principle, with "urgent" orders being executed first, "high priority" orders next, and then "normal" orders – if no other urgent and high classified cash transfer order is queued.

Execution time

T2 allows RTGS DCA account holders to determine the execution time of their payment orders during the business day. The following options are available:

• "FromTime” feature: Transactions to be executed from a certain time (codeword: FROTIME). The order is stored until the indicated time. If the payment order cannot be settled at the indicated time, it is queued. If the payment order cannot be settled by the end of the business day, it is rejected.
• “RejectTime” feature:  transactions that can be executed up to a certain time (codeword: /REJTIME/). If the payment order cannot be settled by the indicated time, it is rejected.
•  “TillTime" feature: transactions which should be executed up to certain time (codeword: /TILTIME/). If the payment order cannot be settled until the indicated time, e.g. due to lack of liquidity, it is queued, so that it may be executed by the end of the business day. If it cannot be settled by the end of the business day, it is rejected.

If a payment order with a “RejectTime“ and “TillTime” indicator is not settled 15 minutes before the defined time, RTGS notifies the RTGS DCA account holder.

Warehoused payments

In T2 payment orders can be submitted by the RTGS account holder up to 10 calendar days before the intended settlement day. In this case, the payment message is warehoused until RTGS service opens for that business date. At the start of the pre-defined day, such orders are checked for correctness and availability of liquidity, validated and settled in accordance with any other execution indicator.

Payment orders revocation/cancellation

T2 allows the RTGS DCA account holder to revoke a payment order by submitting a relevant message (camt.056). T2 processes the request and, if the payment order has not already been settled and there are no other reasons to reject the request, the order is revoked. If the payment order has already been settled, T2 forwards the request to the payee. If the payee accepts the cancellation request, T2 proceeds with cancelling the payment, otherwise it forwards the payee’s rejection message to the applicant.