T2

T2 is the Eurosystem service for settling large-value payments in central bank money.

It forms part of TARGET Services and replaced TARGET2. Therefore, it supports secure euro payments, monetary policy operations, and financial market stability.

The service contains two main components. Central Liquidity Management manages liquidity across accounts. Meanwhile, Real-Time Gross Settlement processes individual payments immediately.

Each transaction settles separately in central bank money. As a result, participants reduce settlement risk and receive final payment confirmation without waiting for net settlement.

T2 also connects with other TARGET Services, including securities and instant payment settlement. Consequently, these services can transfer liquidity through defined interfaces and rules.

The system follows strict operating schedules and requires high availability. Moreover, clear recovery procedures, fallback options, access controls, and reliable interfaces support business continuity.

Its modular structure and critical role make the service an important example for requirements engineering in financial market infrastructures.