T2 (real-time gross settlement system)
T2 is the real-time gross settlement (RTGS) system owned and operated by the Eurosystem. T2 is used by central banks and commercial banks for monetary policy transactions, interbank payments, and commercial payments. In 2023, it handled on average around 375,000 transactions worth almost €2 trillion daily.[1]
The objective of T2 is to support the implementation of the Eurosystem's monetary policy and the functioning of the euro money market. It also aims to minimise systemic risk in the payments market and ensure the efficient processing of payments in euros.[2] Also, central banks external to the eurozone can use T2 and have indicated a desire to do so.[3]
T2 is based on ISO 20022, which is an ISO standard for electronic data interchange between financial institutions. Information gathered from the messages can be used with data analytics and even machine learning to derive new powerful insights.[4]
T2 replaced and consolidated TARGET2 and T2-S used previously in both technical and functional aspects.[5] T2 is accessible through Eurosystem Single Market Infrastructure Gateway (ESMIG) and will share a range of common services..[6] T2 was taken into use in March 2023 when the Eurosystem switched its real-time gross settlement from TARGET2 to T2.[7]
References
- ↑ "Facts and figures". European Central Bank.
- ↑ "What is T2?". European Central Bank.
- ↑ "The Riksbank wants to use the Eurosystem's T2 and TARGET2-Securities platforms". Sveriges Riksbank.
- ↑ "T2/T2S Consolidation – what is it and why does it matter?". Penser.
- ↑ "T2-T2S consolidation: what is it?". European Central Bank.
- ↑ "T2/T2S - Impacts on Luxembourg Institutions". Deloitte.
- ↑ "Successful launch of new T2 wholesale payment system". Banco de España.
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