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 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 mainly settles operations of monetary policy and money market operations.
TARGET2 has to be used for all payments involving the Eurosystem, as well as for the settlement of operations of all large-value net settlement systems and securities settlement systems handling the euro.
TARGET2 is operated on a single technical platform. In terms of the value processed, TARGET2 is one of the largest payment systems in the world. In 2011:
- TARGET2 had 976 direct participants, 3,465 indirect participants and 13,083 correspondents
- TARGET2 processed a daily average of 348,505 payments, representing a daily average value of €2,385 billion;
- the average value of a TARGET2 transaction was €6,8 million;
- 67$ of all TARGET2 payments had a value of less than €50,000 each; 11% of all payments had value of over 1 EUR million;
- ▪ 99.85% of TARGET2 payments were processed in less than five minutes.
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