TARGET2: The Eurosystem's real-time gross settlement system (subtitled)

• published: 18 Sep 2014
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Subtitled version of the video "TARGET2: The Eurosystem's real-time gross settlement system" TARGET2 is the real-time gross settlement (RTGS) system owned and operated by the Eurosystem. TARGET stands for Trans-European Automated Real-time Gross settlement Express Transfer system. TARGET2 is the second generation of TARGET. Payment transactions in TARGET2 are settled one by one on a continuous basis, in central bank money with immediate finality. There is no upper or lower limit on the value of payments. TARGET2 settles payments related to monetary policy operations, interbank and customer payments, and payments relating to the operations of all large-value net settlement systems and other financial market infrastructures handling the euro (such as securities settlement systems or central counterparties). TARGET2 is operated on a single technical platform. Business relationships are established between the TARGET2 users and the respective central bank. In terms of the value processed, TARGET2 is one of the largest payment systems in the world. TARGET2 facts in 2012: - TARGET2 had 999 direct participants, 3,386 indirect participants and 13,313 correspondents - TARGET2 settled the cash positions of 82 ancillary systems - TARGET2 processed a daily average of 354,185 payments, representing a daily average value of €2,477 billion - the average value of a TARGET2 transaction was €7,1 million two-thirds of all TARGET2 payments (i.e. 68%) had a value of less than €50,000 each; 11% of all payments had value of over 1 EUR million each - the peak in volume turnover was 29 June 2012 with 536,524 transactions and peak value turnover was on 1 March 2012 with €3,718 billion - TARGET2's share in total large-value payment system traffic in euro was 92% in value terms and 58% in volume terms - the SSP technical availability was 100% - 99.98% of TARGET2 payments were processed in less than five minutes For more information please visit: http://www.target2.eu