T2 Glossary

Author 4CB/ECB

Version 2.2

Date 2021-03-30

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 Glossary

Term Definition
4CB The Deutsche Bundesbank (BBk), the Banco de España (BdE), the Banque de France
(BdF) and the Banca d'Italia (BdI), collectively, in their capacity as the national CBs
responsible for building, maintaining and running the TARGET Services in accordance
with the relevant contractual arrangements and with decisions of the ECB's Governing
Council.

A2A See Application-To-Application

Account BIC BIC11 of the account.

Account Holder Entity which holds one or several cash accounts with a CB.

Account Monitoring Group An optional function that enables an account holder to group cash accounts from one
or several TARGET Services for monitoring the overall liquidity across the set of
grouped accounts.

Account Owner BIC BIC11 of the responsible account owner and same as party BIC.

Act on behalf To undertake an action in the name of an actor, subject to its authorization.

Actor Uses A2A and/or U2A facilities in order to communicate with the TARGET Services.

Addressable BIC A correspondent or a branch listed in the RTGS Directory with participation types 05–
08, that can submit/receive cash transfers indirectly to/from RTGS via a Direct Partic-
ipant.

Addressee BIC BIC11 for sending/receiving business payloads.

Adjustment balance The overall balance that is needed at the end of each business day (starting from, and
including, the current business day) to fulfil the minimum reserve requirement in the
current minimum reserve maintenance period.

Ancillary system A system in which payments and/or financial instruments are exchanged and/or
cleared or recorded, while the ensuing monetary obligations are settled in another sys-
tem, typically an RTGS system. Ancillary systems categories are:

l retail payment systems;

l high value payment systems;

l instant payment systems;

l foreign exchange settlement systems;

l money market settlement systems;

l clearing houses (central counterparties);

l securities settlement systems;

l other.

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API See Application Programming Interface

Application Programming In- The Application Programming Interface provides a tool for customer application pro-
terface
grams to connect to the TARGET Services via A2A. The Application Programming
Interface enables a clearly abstracted and structured access to the functions of the
backend.

Application-To-Application A connectivity mode that enables the exchange of information between the applica-
tions of the TARGET Services and the software application(s) of the connected actors.

AS See Ancillary system

AS batch Ancillary systems (AS) use T2 to settle monetary obligations resulting from the clearing
and/or the exchange or the record of payments and/or financial instruments. Each
XML-message (ASTransferInitiation, ASInitiationStatus, ASTransferNotice) ex-
changed in this context between T2 and the AS contains information about one or
more settlement instructions.

An AS batch is an entity, grouping the essential elements common to all settlement

instructions, either within an ASTransferNotice or within an ASTransferInitiation and
the resulting ASInitiationStatus message.

AS batch message An AS transfer initiation (pain.998) message, that an ancillary system sends or a CB
sends on behalf of an ancillary system and that contains AS transfer orders or liquidity
transfer orders.

AS Procedure A AS settlement procedure based on “Debits first” booking, i.e. first all the debits are
executed, then all the credits. If one of the transfers fails, the others are unwound.

AS Procedure B AS settlement procedure based on “All or nothing” booking, i.e. credits and debits are
simultaneously executed. If one of the transfers fails, all the others are not executed
either.

AS Procedure C AS settlement procedure based on settlement on sub-account, i.e. a procedure in

which the settlement bank transfers liquidity to its sub-account that is dedicated for
settlement with an AS. The settlement is based on cycles.

AS Procedure D AS settlement procedure based on prefunding of a dedicated AS technical account in

RTGS.

AS Procedure E AS settlement procedure based on real-time gross mode settlement of bilateral AS

transfer orders.

AS settlement bank An RTGS Account Holder that participates in the settlement of an ancillary system.
The RTGS Account Holder manages the AS settlement process (e.g. the determina-
tion of settlement positions, monitoring of the exchange of payments, etc.) not only for
itself but possibly also for other ancillary system customers that settle on its RTGS
DCA, RTGS CB Account or sub-account.

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AS settlement procedure A specific set of processes and functions in the T2 Service that an ancillary system
can use for the settlement of AS transfer orders.

AS technical account A technical account that an ancillary system uses and that the ancillary system holds
or a CB holds on behalf of the AS used either as intermediary account for the settle-
ment of AS transfer orders or to collect funds.

AS transfer A settled AS transfer order.

AS transfer order A transfer order that an ancillary system instructs in order to settle monetary obliga-
tions.

Authentication A security mechanism for verifying the identity of an individual or process.

Automated Liquidity Transfer Liquidity transfer order created automatically when a payment, a credit line update or
Order
a seizure of funds update is queued in CLM, and attempting to pull liquidity from RTGS
into CLM.

Automatic marginal lending The automated transformation of intraday credit in overnight credit at the end of the
day when the overall calculated position of a monetary policy counterparty is negative.

Availability Ability of a configuration item or service/component to perform its agreed function

when required.

Available liquidity The amount of funds available for the settlement of cash transfer orders on a cash
account. It consists of the cash balance plus any credit line minus any seized amount.

Backup payment An RTGS U2A functionality used to input payment orders on an exceptional basis
when an RTGS Account Holder through an incident on its side loses its ability to send
A2A payment orders to RTGS.

BAH See Business Application Header

Banking Group Set of parties, under the responsibility of one or multiple CBs, viewed collectively for
certain business purposes, such as oversight and regulation.

BDM See Business Day Management

BFH See Business File Header

BIC See Business Identifier Code

BIC directory A listing of Business Identifier Codes (BIC) that SWIFT has registered according to the
ISO 9362 standard with the names and addresses of the entities published by SWIFT.

BIC11 An eleven-digit code consisting of the BIC8 followed by a branch code of three char-
acters that is used to identify specific locations, departments, services or units of the
same financial institution.

BIC8 Business Identifier Code with eight mandatory characters representing financial insti-
tution code, country code, location code.

BICFI Business Identifier Code Financial Institution

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Bilateral limit The maximum daily outflow of liquidity for payments with normal priority defined by an
RTGS Account Holder for one of its RTGS DCAs towards another RTGS DCA.

Blocking An exclusion of parties (party blocking) or accounts (account blocking) from settlement
processing within one or more TARGET Services.

Broadcast Information simultaneously available to all or a selected group of users in U2A and
A2A, if the user has opted for A2A broadcasts and if the notification is eligible for A2A
broadcast.

Business Application Header Part of each XML based business message exchanged between directly connected
T2 actors and TARGET services/components. The BAH contains information which is
of use to the business application to correctly identify and process the business mes-
sage payload.

Business Case A Business Case groups all messages, cash transfer (orders) and/or tasks linked to a
party's order or a system-generated activity based on party configuration.

Business Case Id The business case id is a unique identifier dynamically assigned by T2 to a business
case.

Business Case Code A four-letter code indicating the business context of a business case related to a cash
transfer or a credit line modification. A Business Case Code classifies a Business Case
but does not identify it (several Business Cases may share the same Business Case
Code).

Business day A date on which the relevant TARGET Service is open for settlement.

Business Day Management It shows the schedule and calendar for all components and currencies. Moreover it is
in charge for orchestrating the flows of events and related responses from the triggered
components.

Business File Header See File

Business Identifier Code Code used in T2 services /components to identify parties, accounts and/or agents in
messages. It is defined in ISO 9362 and consists of eight or eleven contiguous char-
acters, comprising a (non-) financial institution code (four characters), a country code
(two characters), a location code (two characters) and, optionally, a branch code (three
characters).

Business message See Message

Business payload Part of a business message that contains the real business data (e.g. payment or-
der).

Business receiver The business receiver is identified by an Addressee BIC (BIC11) as TO in the BAH.

Bypass FIFO See FIFO by-passing

Cash account A formal currency-specific record of the debit postings and credit postings for which a
balance is maintained.

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Cash transfer Settled cash transfer order. Encompasses payments, liquidity transfers and AS trans-
fers.

Cash transfer order A cash transfer order is an instruction to move liquidity. It encompasses payment or-
ders, liquidity transfer orders and AS transfer orders.

CB See Central bank

CB Account A cash account for which a CB is the account holder.

CB ECB account An account for recording the asset/liability position of a CB towards the ECB.

CB on behalf A CB operating on behalf of a payment bank or ancillary system.

CBO See Central bank operation

CCP See Central counterparty

CCT Customer Credit Transfer

Ceiling Upper threshold on a cash account balance, the breach of which triggers a specific
action.

Central bank An institution that conducts the monetary policy for a specific area by the way of legal
act.

Central bank operation A business transaction that a CB initiates in its capacity as CB of issue, e.g. tender
policy operations, changes of the credit line.

Central counterparty An entity that interposes itself between the counterparties to the contracts traded in
one or more financial markets, becoming buyer to every seller and seller to every
buyer.

Central European Summer Standard time that is two hours ahead of Coordinated Universal Time (UTC).
Time
Central European Time Standard time that is one hour ahead of Coordinated Universal Time (UTC).

Central Liquidity Management A component of the T2 Service which provides information on CB liquidity, manage-
ment of credit lines and CBOs as well as funds for facilitating settlement in the TAR-
GET Services.

CEST See Central European Summer Time

CET See Central European Time

CGU See Closed Group of Users

Closed Group of Users Each Network Service Provider defines a Closed Group of Users for each TARGET
Service environment (test and production) and checks the authorisation of the TAR-
GET Services’ actors to access the TARGET Services based on enforced rules at
Network Service Provider level, supporting segregation of traffic flows between partic-
ipants.

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Clearing The process of transmitting, reconciling and, in some cases, confirming payment or
securities transfer orders prior to settlement, possibly including the netting of orders
and the establishment of final positions for settlement.

Clearing house Central entity (or central processing mechanism) through which financial institutions
agree to exchange transfer instructions for funds or securities. In some cases, the
clearing house may act as central counterparty (CCP) for the financial institutions and
therefore assume significant financial risks.

CLM See Central Liquidity Management

CLM Account Holder A party that holds one or more main cash accounts in CLM.

CMB Credit memorandum balance.

CMS See Collateral management system

Collateral An asset or third party commitment that is used by a collateral provider to secure an
obligation vis-à-vis a collateral taker.

Collateral management system System used for the management of collateral activities regarding a set of collateral-
ized credit operations (e.g. monetary policy operations, intraday credit, repurchase
agreements, loans).

Co-management Functionality in CLM for banks to delegate their MCA´s management. The scope of
the delegation cannot be defined technically in CLM, but has to be defined in specific
agreements.

Common Component A set of hardware, software and other technical infrastructure elements available for
use by more than one TARGET Service for the purposes of one or more functionality.
Components include CLM, RTGS and common components like Common Reference
Data Management, Billing, Data Warehouse, Eurosystem Single Market Infrastructure
Gateway, Legal Archiving, Business Day Management and Enhanced Contingency
Solution.

Common reference data Data maintained in the CRDM used by one or several services or components.

Common Reference Data Man- A common component that provides users with interfaces allowing the creation, up-
agement
dating and deletion of common reference data related to parties, cash accounts and
configuration rules and parameters.

Common reference data is shared with the components according to the specific re-
questing Service requirements.

Connected payment A payment by a CB to a CLM Account Holder (potentially coming from the ECMS) that
triggers both a change in the credit line on the MCA of the CLM Account Holder and
an immediate debit/credit of its account which can compensate the change in the credit
line.

Contingency Services The component to process cash transfer orders when the T2 Service is not available
as the result of a major incident.

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Countable Payment Payment order queued due to a limit breach.

CRDM See Common Reference Data Management

Credit line Commitment to grant intraday credit on demand based on collateral provided to a CB.

Credit transfer Payment instrument allowing a payer to instruct the institution with which its account
is held to transfer funds to a beneficiary.

Credit transfer order An instruction from the payer to credit a specific amount of funds on the payee’s cash
account.

Cut-off time Deadline defining up to when specific interactions with a TARGET Service are possi-
ble.

Data propagation The automated distribution of data from one data source to one or more target data
repositories.

Data Warehouse Common component that collects data from TARGET Services (except TIPS) and
common components, in which data are aggregated and optimized for reporting and
analysis.

Data Warehouse report (DWH Describes all types of results (including scheduled for A2A delivery and ad hoc in U2A
report)
mode) which a DWH user can retrieve within the DWH common component.

The following types of DWH reports exist: predefined DWH reports, adaptable DWH
reports and user defined DWH reports.

DCA See Dedicated cash account

Dedicated cash account A cash account that is reserved for use by one specific Settlement Service among T2S
and RTGS.

Dedicated transit account A technical account, owned by a CB (i.e. one per currency and receiving service),
reserved for transfer of funds between the individual TARGET Settlement Services.

DEP Data Exchange Protocol

Deposit facility A standing facility of the Eurosystem which counterparties may use to make overnight
deposits at a national central bank. Such deposits are remunerated at a pre-specified
interest rate.

Direct debit A settled direct debit order.

Direct debit mandate An authorization that a payer provides to a payee that allows the payee to debit the
payer’s account.

Direct debit order A pre-authorized instruction from the payee to debit a specific amount of funds on the
payer’s cash account.

Direct Participant (RTGS) A party owning an RTGS DCA or RTGS CB Account and having direct access to
RTGS. A direct participant is listed in the RTGS Directory with participation type 01
except if the participant does not want to be published.

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Distinguished name Name that uniquely identifies an entry in a directory or network.

DMT Data Migration Tool

DN See Distinguished name

Document See Business payload

DWH See Data Warehouse

e.g. For example (Latin: ‘exempli gratia’).

Earmarked Status of a cash transfer order that is ready for settlement but not considered for vari-
ous reasons.

ECB European Central Bank

ECB mirror account Account in CLM held by the ECB to mirror the asset/liability position of a CB on the CB
ECB accounts.

ECMS See Eurosystem Collateral Management System

ECONS II Enhanced Contingency Solution for the T2 service.

EEA European Economic Area

Eligible monetary policy coun- Credit institutions established in the euro area that are required to hold minimum re-
terparty
serves with a Eurosystem CB and have access to the Eurosystem monetary policy
operations (open market operations and standing facilities).

Enhanced Contingency Solu- The Enhanced Contingency Solution has the aim to address a situation where the T2
tion
Service (i.e. CLM and RTGS) is not available due to a major technical failure or a
successful cyber-attack. It allows settlement of transactions on contingency accounts.

Entry disposition Set of liquidity management features achieving a flexible and need-based control of
the payment order flows, thereby limiting possible liquidity risks.

EoD End-of-day

ESMIG See Eurosystem Single Market Infrastructure Gateway

Eurosystem Collateral Man- ECMS is a single Eurosystem application for managing eligible assets as collateral in
agement System
Eurosystem credit/liquidity absorbing operations.

Eurosystem Single Market In- Common entry point for all interactions with Eurosystem Market Infrastructure. Based
frastructure Gateway
on common technical specifications, ESMIG is NSP agnostic. It allows entities to con-
nect through one or multiple NSPs for both A2A and U2A interfaces.

Excess reserve Holdings exceeding the required minimum reserves.

Excess reserve exemption For a party subject to minimum reserves: excess reserves balance up to the “allow-
amount
ance”. The “allowance” is the volume of reserve holdings in excess of minimum reserve
requirements that is exempt from the deposit facility rate. It is determined as a multiple

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of a credit institution’s minimum reserve requirement. This multiple is published by the

Eurosystem and part of the CRDM configuration.

Excess reserve remuneration For a party subject to minimum reserves: excess reserves balance beyond the “allow-
amount
ance”. The “allowance” is the volume of reserve holdings in excess of minimum reserve
requirements that is exempt from the deposit facility rate. It is determined as a multiple
of a credit institution’s minimum reserve requirement. This multiple is published by the
Eurosystem and part of the CRDM configuration.

Exchange Instructions, queries, reports or notifications that are communicated as files or mes-
sages.

FH File Header

FI Financial institution

FICT Financial institution credit transfer

FIFO See First In - First Out

FIFO by-passing When the settlement algorithm attempts to settle the subsequent cash transfer order
in the queue after a cash transfer order in the queue fails owing to lack of funds; also
called Bypass FIFO.

File (i) A set of messages wrapped under a business file header.

(ii) A network channel, see “file-based network channel”.

File-based network channel Channel through which data is exchanged and which Data Exchange Protocol (DEP)
data structure is defined with minimum size 0 and maximum size 32 MB. The channel
can be used for the exchange of messages and files.

FILERT File real-time

FILESNF File store-n-forward

Final Irrevocable, unconditional, or not annullable.

Final settlement Settlement that is irrevocable, unconditional, or not annullable.

First In - First Out A sequence in which payment orders are processed in the same order as they arrived.

Floor The lower threshold on a cash account balance, the breach of which triggers a specific
action.

GFM Guarantee Fund Mechanism

Graphical User Interface An interface that allows a user to interact with a software application using graphical
elements (e.g. windows, menus, buttons and icons) on a computer screen.

Gridlock A situation that can arise in a funds or securities transfer system in which the settle-
ment failure of some transfer orders (because the necessary funds are unavailable)
prevents the settlement of a substantial number of further orders for other account
holders.

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Gross settlement system A transfer system in which transfer orders are settled one by one.

Guarantee fund mechanism The function to provide the required additional funds for the settlement of AS transfer
orders according to contractually defined rules when the AS transfer orders of an an-
cillary system fail to settle with the liquidity that the settlement banks provided.

Guarantee funds account The cash account that holds the additional funds for the settlement of AS transfer or-
ders when an ancillary system uses the guarantee fund mechanism.

Guarantor The legal entity that owns the guarantee fund account.

GUI See Graphical User Interface

HH:MM:SS Hour:Minute:Second (e.g. used within the timestamp, every letter stands for one digit).

HTTP Hypertext Transfer Protocol

HVPS+ High Value Payments Systems Plus; an international working group that defines mes-
sage usages guidelines for RTGS systems. RTGS systems may customise these gen-
eral usage guidelines for their purposes.

i.e. That is (Latin: ‘id est’).

IBAN International Bank Account Number, an internationally used number for identifying
bank accounts.

ID Identifier, identification.

Immediate liquidity transfer or- A liquidity transfer order that is immediately submitted for settlement.
der
Incident An event which is not part of the standard operation of a service and which causes, or
may cause, an interruption or a reduction of the quality of that service.

Indirect Participant A credit institution listed in the RTGS Directory with participation type 02, that can
submit/receive cash transfers indirectly to/from RTGS via a Direct Participant.

Information period An optional connected mechanism which can be used in the AS settlement procedures
A, B and E that informs the settlement banks of the settlement time and the required
liquidity and provides the settlement bank with the possibility to disagree.

Information Technology Infra- ITIL is a collection of best practices for IT service management with the aim to align IT
structure Library
services with business objectives. It improves IT support and service levels.

Instructions Orders for a service/component e.g. payment orders, liquidity transfer orders, refer-
ence data maintenance.

International Organization for It develops and publishes worldwide international standards for industries and ser-
Standardization
vices.

Inter-service liquidity transfer A transfer of funds between cash accounts of different settlement services.

Intraday credit An intraday credit is granted when the balance of an MCA turns negative at least once
within a business day. This intraday credit is limited to the amount of credit line on the
respective MCA until the end of each business day.

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Intraday liquidity Funds that can be accessed during the business day, usually to enable financial insti-
tutions to make payments/settlements.

Intra-service liquidity transfer A transfer of funds between cash accounts within a settlement service.

ISO See International Organization for Standardization

ISO 20022 International standard for financial services messaging, maintained by the Interna-
tional Organization for Standardization (ISO).

ISO 3166 ISO country codes

ISO 4217 ISO currency codes

IT Information technology

ITIL See Information Technology Infrastructure Library

LEA Legal Archiving

Legal entity identifier The Legal entity identifier is a 20-digit, alphanumeric code based on the ISO 17442
standard that enables clear and unique identification of legal entities participating in
financial transactions.

LEI See Legal entity identifier

Liquidity transfer A settled liquidity transfer order.

Liquidity Transfer Group An optional grouping of cash accounts for allowing intra-service liquidity transfers be-
tween the cash accounts included in this grouping.

Liquidity transfer order An instruction to transfer a specified amount of funds from one cash account to another
cash account.

Local reference data The specific reference data that a TARGET Service or component uses, stored locally.

LRDM Local Reference Data Management

LT 1 See Liquidity transfer

LTO 2 See Liquidity transfer order

Main cash account A cash account in CLM for provision of credit line, settling CBOs and liquidity manage-
ment.

Maintenance period The period over which compliance with minimum reserve requirements is calculated
and for which such minimum reserves must be held on reserve accounts.

Mandated payment A payment order initiated by a CB on behalf of an RTGS Account Holder.

_________________________

1 Only used in figures

2 Only used in figures

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Marginal lending account A cash account held by the relevant CB opened in the name of a monetary policy
counterparty and linked to an MCA of that counterparty.

Marginal lending facility The standing facility of the Eurosystem that includes marginal lending on request and
automatic marginal lending which counterparties may use to receive overnight credit
from a CB against eligible collateral, which are remunerated at a marginal facility in-
terest rate defined by the Governing Council of the ECB.

Marginal lending on request The initiation of the marginal lending facility by a monetary policy counterparty (through
a CB).

MCA See Main cash account

MEPT Message exchange processing for TIPS.

Message A communication between an actor and a TARGET Service, or between two TARGET
Services.

Message subscription A common reference data configuration that allows an actor to subscribe to certain
messages that the TARGET Service or component sends, based on a set of prede-
fined parameters.

Message-based network chan- Channel through which data is exchanged and which DEP data structure is defined
nel
with minimum size 0 and maximum size 32 KB. The channel can be used for the ex-
change of messages and files.

MFI See Monetary financial institution

Monetary financial institution Financial institutions that form together the money-issuing sector of the euro area.
These include the Eurosystem, resident credit institutions (as defined in EU law) and
all other resident financial institutions whose business is to receive deposits and/or
close substitutes for deposits from entities other than MFIs and, for their own account
(at least in economic terms), to grant credit and/or invest in securities. The latter group
consists predominantly of money market funds.

MSGRT Message real-time

MSGSNF Message store-n-forward

Multi-addressee A branch or a credit institution listed in the RTGS Directory with participation types 03–
04 that can submit/receive cash transfers directly to/from RTGS without involvement
of its linked Direct Participant. These cash transfers are settled on the RTGS
DCA/RTGS CB Account of the Direct Participant that has authorised the respective
multi-addressee.

Multilateral limit The maximum daily outflow of liquidity for payments with normal priority defined by an
RTGS Account Holder for one of its RTGS DCAs towards all RTGS DCAs for which
no bilateral limit has been defined.

NCB National central bank (see Central bank).

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Network Service Provider Business entity, licensed – in this case - by the Eurosystem, which provides the tech-
nical infrastructure, including hardware and software, to establish a secure and en-
crypted network connection permitting the exchange of information between actors.

Network service type Modus for connection, four possible options:

l store-n-forward message-based;

l store-n-forward file-based;

l real-time message-based;

l real-time file-based.

Non-repudiation of origin In the context of technical communication, a method used to protect the recipient of a
message from a denial by the originator of having originated the message.

Notification Information provided by TARGET Services in A2A or U2A on a change in the business
status of a cash transfer order, account floor or ceiling or other business related ac-
tions.

NRO See Non repudiation of origin

NSP See Network Service Provider

Offsetting A mechanism that considers cash transfer orders in the queues of RTGS dedicated
cash accounts and tries to settle them simultaneously on a gross basis within one legal
and logical second.

Opening day A day on which settlement takes place according to the daily processing schedule in
a TARGET Service.

Operator Legal and/or organizational entity/entities that operates/operate the TARGET Ser-
vices.

OS Operating system (e.g. for Windows).

Overnight credit See Marginal lending facility

Overnight deposit See Deposit facility

Overnight deposit account A cash account owned by a CB, but opened in the name of a monetary policy coun-
terparty, and linked to an MCA of the counterparty.

Parent BIC BIC11 of the system entity which is responsible for all parties (party BICs) related to
this parent BIC. Any combination of parent BIC and party BIC must be unique.

Partial settlement The settlement of only part of a liquidity transfer order or settlement instruction full
amount, when full settlement is not possible owing to lack of cash or securities, re-
spectively.

Party A set of reference data stored in CRDM, representing a central bank, a payment bank
or an ancillary system, which can use one or several TARGET Services. A Cash ac-
count in a TARGET Service belongs to a party.

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Party BIC A BIC11 identifying a party in CRDM.

Party type The party type defines the role of a party, for example: Central Bank, Payment Bank,
Ancillary System.

Payment It is a settled payment order.

Payment message A communication that contains a credit transfer order or a direct debit order.

Payment order Encompasses both a credit transfer order and a direct debit order.

Pending amount Remaining amount of an order (e.g. reservation) which cannot be executed due to e.g.
lack of liquidity.

PKI Public key infrastructure

Priority An attribute of a cash transfer order that specifies the urgency for its settlement.

Privilege A right, either granted or denied, to execute certain functions within an application or
to access and/or update certain data.

Problem An abnormal state or condition at the component, equipment, or sub-system level,

which may lead to a failure that produces incorrect or unexpected results, showing a
discrepancy between the relevant specifications and the actual results.

PTA Party Technical Address

Pull mode Communication model using the request/response (and query/response) message ex-
change pattern. An actor requests specific information from a TARGET Service and
then waits to receive the response.

Push mode Communication model used by a TARGET Service to send messages to an actor on
a mandatory basis or based on a subscription.

Query A real-time function to retrieve information from a data source using selection criteria
to fulfil ad hoc information demands.

RBAC Role-based access control

Real-time At the same time as an event actually happens.

Real-Time Gross Settlement Continuous (real-time) settlement of funds or securities transfers individually on an
order-by-order basis with intraday finality.

Real-Time Gross Settlement Settlement system in which processing and settlement take place on a transaction-by-
System
transaction basis in real-time.

Recall Action to request the receiver of a payment to return the already settled amount.

Rejection Action by the system to stop processing an instruction before it is processed, due to
the non-fulfilment of technical and/or business conditions.

Report A publishing of information in a defined standard format to specific recipients.

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Report configuration A report configuration is set up by an actor in the Common Reference Data to sub-
scribe for a specific report produced by a TARGET Service to be provided to a list of
recipient parties.

Reservation A function to prevent the transfer of a specified amount of funds in a specific account
to any other account except for the purpose for which the funds were allocated.

Revocation An action to stop the execution of an order once it has passed the technical and busi-
ness validations conducted by the system and is released for further processing and
irrespective whether unsuccessful execution attempts have taken place previously.

Role A set of privileges that can be granted to the user of a software application.

RTGS (1) See Real-Time Gross Settlement System, (2) a component of the T2 Service for
the processing of high-value payments and AS settlement.

RTGS dedicated cash account A cash account that a legal entity holds in RTGS to settle cash transfer orders.

RTGS Directory The RTGS Directory provides information on all RTGS Participants that are reachable
for payments in RTGS and have chosen to include their account(s) in the directory.

RTGS sub-account A cash account that is linked to an RTGS DCA or RTGS CB account and used by AS
settlement procedure C.

RTS Real-time settlement

Rule-based liquidity transfer An order to transfer liquidity initiated by a component due to a:

order
l floor and/or ceiling rule;

l pending urgent payment order, AS transfer order or high priority payment order
rule (RTGS only).

Running average Average EoD balance during the current minimum reserve maintenance period calcu-
lated at the end of the previous business day.

SB Settlement Bank

SBTI Settlement Bank Transfer Initiation, used for an immediate liquidity transfer order from
an RTGS Account to an AS technical account – AS settlement procedure D.

Service party type Attribute of the party service link (that defines which services or components a party
may use), and defining the role of the party in the service. A party using a service
requires at least one service party type.

Settlement period An optional feature for AS settlement procedures A, B and E. If used by the ancillary
system it indicates the pre-defined period for settlement. If settlement is not completed
by the end of the settlement period, the transactions are rejected.

Settlement service Services and components where an account can be opened for settlement: RTGS,
CLM, TIPS and T2S.

SoD Start-of-day

SSS Securities Settlement System

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 Glossary

Standing order for limits A CRDM configuration to create a bilateral limit or a multilateral limit of a given amount
on a given RTGS DCA at the start of each business day.

Standing order for reservation A CRDM configuration to create a reservation on a given account at the start of every
business day.

Standing order liquidity trans- Recurring transfer of a defined amount of liquidity every business day at certain con-
fer order
figured business day events. In case of intra-service standing order liquidity transfer
orders within CLM/RTGS either the restriction of a Liquidity Transfer Group applies or
a CB Account is involved.

Store-n-forward network chan- A common technique in telecommunications in which a data transmission from a
nel
source node is stored at a redistribution node before being sent to the destination
node.

STP Straight-through processing

Submitting actor A party that sends a communication to a TARGET Service.

System entity The operator of a TARGET Service, a CB or a central securities depository for which
a segregation of processing capabilities and data in a TARGET Service is required.

System user An individual or a technical process/application that can log into a T2 Service with a
login name and password.

T2 See T2 Service

T2 Service A TARGET Service that is composed of the components Central Liquidity Manage-
ment (CLM) and Real-time Gross Settlement (RTGS).

T2S See TARGET2-Securities.

TARGET Trans-European Automated Real-time Gross settlement Express Transfer system: the
Eurosystem’s real-time gross settlement system for the euro.

Target amount Amount to which the balance (available liquidity) of an MCA or RTGS DCA is reduced
-in case of ceiling breach- or increased -in case of floor breach.

TARGET Instant Payment Set- A real-time settlement service for retail payments settled in central bank money.
tlement
TARGET Instant Payment Settlement is one of the TARGET Services.

TARGET Services Services that the Eurosystem developed and operates to ensure the free flow of cash,
securities and collateral across Europe that include T2, TARGET2-Securities (T2S)
and TARGET Instant Payment Settlement (TIPS).

TARGET2-Securities Set of hardware, software and other technical infrastructure components through
which the Eurosystem provides the services for central securities depositories and CBs
that allow core, neutral and borderless settlement of securities transactions on a deliv-
ery versus payment basis in central bank money.

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 Glossary

Technical receiver Actor who is authorised to receive messages and/or files from a TARGET Service or
common component. The receiver is identified by a distinguished name that is not part
of the Business Application Header or the Business File Header.

Technical sender Actor who is authorized to send messages and/or files to a TARGET Service or com-
mon component. The sender is identified by a distinguished name that is not part of
the Business Application Header or the Business File Header.

Timestamp A sequence of characters, denoting the date and the time in RTGS.

TIPS See Target Instant Payment Settlement

TIPS account Cash account in TIPS reserved for the settlement of instant payments and liquidity
transfers.

TMS Trouble Management System

U2A See User-To-Application

UDFS User Detailed Functional Specifications

UETR Unique End-to-End Transaction Reference

UHB User Handbook

UML Unified Modelling Language

URD See User Requirements Document

URI Universal Resource Identifier

User requirement A condition or capability needed by a stakeholder to solve a problem or achieve an

objective.

User Requirements Document A catalogue of user requirements.

User-To-Application A connectivity mode for the exchange of information between a user and a software
application through a Graphical User Interface.

UTF-8 8-bit Unicode Transformation Format

V-shape A message flow in which the message processing sends the full payment that it has
received from the submitting actor in RTGS to the receiving actor only after settlement
in RTGS.

Warehoused payment order A payment order submitted up to ten calendar days in advance of the date on which
the payment order is intended to be executed.

XML Extensible Mark-up Language

YYYY-MM-DD Year-month-day (e.g. used within the timestamp, every letter stands for one digit).

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