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.
T2 (TARGET RTGS and central liquidity management)T2 is the Eurosystem's real-time gross settlement system for euro, which replaced TARGET2 in March 2023. It combines Central Liquidity Management, where banks hold their main central bank accounts, with an RTGS service where high-value payments settle one by one in central bank money. It is part of the TARGET Services with T2S and TIPS.
CHAPSCHAPS is the UK's high-value sterling payment system, operated by the Bank of England, which settles payments one by one in central bank money through its real-time gross settlement service. It is used for interbank payments, large corporate payments and house purchases, and moved to ISO 20022 messages in 2023.
SIC (Swiss Interbank Clearing)SIC is the Swiss franc real-time gross settlement system, operated by SIX Interbank Clearing on behalf of the Swiss National Bank. It settles large-value and retail payments in central bank money and, since August 2024, instant payments around the clock. A related system, euroSIC, settles euro payments for Swiss banks.
Deferred net settlement (DNS)Deferred net settlement (DNS) is a method in which payments are collected over a period and only each participant's net position is settled, at set times, often in central bank money. It needs much less liquidity than real-time gross settlement, while payments become final only when the net settlement completes.
Intraday liquidityIntraday liquidity is the money a bank can use during the business day to make payments on time: balances on central bank and correspondent accounts plus credit it can draw intraday. Intraday liquidity risk is failing to make time-critical payments because outflows come before inflows. Basel Committee tools (BCBS 248) measure it.
T2 (TARGET RTGS and central liquidity management)T2 is the Eurosystem's real-time gross settlement system for euro, which replaced TARGET2 in March 2023. It combines Central Liquidity Management, where banks hold their main central bank accounts, with an RTGS service where high-value payments settle one by one in central bank money. It is part of the TARGET Services with T2S and TIPS.
CHAPSCHAPS is the UK's high-value sterling payment system, operated by the Bank of England, which settles payments one by one in central bank money through its real-time gross settlement service. It is used for interbank payments, large corporate payments and house purchases, and moved to ISO 20022 messages in 2023.
SIC (Swiss Interbank Clearing)SIC is the Swiss franc real-time gross settlement system, operated by SIX Interbank Clearing on behalf of the Swiss National Bank. It settles large-value and retail payments in central bank money and, since August 2024, instant payments around the clock. A related system, euroSIC, settles euro payments for Swiss banks.