Payments and markets glossary



TARGET2-Securities (T2S)
Trans-European Automated Real-time Gross settlement Express Transfer system: the Eurosystem’s real-time gross settlement system for the euro. The first-generation TARGET system was replaced by TARGET2 in May 2008.
The second-generation TARGET system. It settles payments in euro in central bank money and functions on the basis of a single IT platform, to which all payment orders are submitted for processing. This means that all payments are received in the same technical form. TARGET2 is legally structured as a multiplicity of RTGS systems (TARGET2 component systems). See also
real-time gross settlement (RTGS) system
TARGET2-Securities (T2S)
The Eurosystem’s single technical platform enabling central securities depositories (CSDs) and national central banks to provide core, borderless and neutral securities settlement services in central bank money in Europe. TS2 went live on 22 June 2015.
three-party card scheme
A card scheme involving the following stakeholders: 1) the card scheme itself, which acts as issuer and acquirer; 2) the cardholder; and 3) the accepting party. This contrasts with a four-party card scheme, where the issuer and the acquirer are separate entities and are separate from the card scheme itself. See also
card scheme
four-party card scheme
tiering arrangement
An arrangement whereby indirect participants in a system require the services of direct participants in order to carry out their transactions. See also
indirect participant
settling participant
TARGET instant payment settlement
trade confirmation
confirmation (trade confirmation)
transaction reference number (TRN)
A unique reference number used to identify individual payment or securities settlement instructions (e.g. SWIFT payment messages or credit card authorisations).
transfer order
An order or message requesting the transfer of assets (e.g. funds, securities, other financial instruments or commodities) from the debtor to the creditor. See also
transfer system
A set of legal, technical and procedural arrangements for the transfer of assets such as money or securities.
tri-party repo
Repurchase agreement in which a third party (e.g. a custodian bank, a clearing house or a central securities depository (CSD)) is responsible for the management of the collateral during the life of the transaction.
transaction reference number (TRN)
A procedure in which a paper-based transfer order or other financial instrument is replaced, in whole or in part, by an electronic record of the content of that instrument for the purposes of further processing and transmission.