Payment versus payment (PvP) · Concepts · European Finance Observatory

Roles that need it

Real-time gross settlement (RTGS)Real-time gross settlement (RTGS) is the settlement of payments one by one, as soon as they are processed and without netting, usually in central bank money. It removes settlement risk between participants and needs more liquidity than net settlement. T2 in the euro area, CHAPS in the UK and SIC in Switzerland are RTGS systems.
Settlement finalitySettlement finality is the point at which a transfer of securities or cash becomes irrevocable and unconditional, even if a participant later becomes insolvent. In the EU the Settlement Finality Directive protects transfer orders entered into designated payment and securities settlement systems.
Nostro and vostro accountsA nostro account is an account a bank holds with another bank, usually abroad and in foreign currency (our account with you). The same account seen from the bank that keeps it is a vostro (your account with us), also called a loro account. Nostros let banks make and receive payments in currencies where they have no direct system access.

Updated 31 Oct 2026.