T2 and TIPS Simulator
TARGET Services are T2 (CLM, Central Liquidity Management, plus RTGS), T2S, TIPS and ESMIG, under Guideline (EU) 2022/912. T2 and TIPS are separate systems with separate rules, states, messages and outcomes, and this simulator runs them as two separate flows. Pick a system first: the participant list, the controls and the state display all change.
TIPS (instant payments). TIPS settles instant payments in central bank money, around the clock (24/7/365), primarily SCT Inst. Its transaction lifecycle is Received, Validated, Reserved, then Settled, or Failed, Expired or Rejected. Those are TIPS internal transaction statuses, not ISO 20022 message status codes. Funds are reserved on the payer TIPS DCA while the beneficiary PSP decides. The SCT Inst scheme maximum execution timeline is 10 seconds end to end (5-7-9 second sub-timelines in the 2025 rulebook); the TIPS beneficiary-reply timeout is a separate, configurable TIPS system parameter, and its current value is not stated here because it could not be verified.
T2 RTGS (large-value payments). T2 settles euro payments one by one, in real time gross settlement, in central bank money, typically large-value and interbank payments; there is no minimum value. T2 has no Reserved state and no Expired state, and no published universal status sequence like TIPS. A payment order is validated, then settled at entry disposition if liquidity and FIFO conditions allow, otherwise queued with offsetting checks and optimisation, and settled or rejected at the cut-off (customer payments 17:00 CET, interbank payments 18:00 CET) or at its RejectTime. RTGS runs 02:30 to 18:00 CET on TARGET business days, closed weekends and TARGET holidays. T2 replaced TARGET2 on 20 March 2023. Every RTGS DCA holder must hold at least one main cash account (MCA) in CLM.
Interbank settlement in either system credits the payee PSP account in central bank money. That is not the beneficiary customer account posting: the beneficiary PSP must then credit the beneficiary own account. Settlement in central bank money is final and irrevocable under the TARGET rules (Settlement Finality Directive 98/26/EC); finality does not prevent a later return of the customer payment by pacs.004.
Payment state: Not started
Press Run payment to step through the flow for the selected system.
Not simulated here
Investigation by pacs.028 (Payment Status Request, answered by pacs.002); recall by camt.056 with a positive recall answer by pacs.004, which is a separate settlement instruction, not a status report; non-time-critical TIPS payments with a 6-hour lifecycle; cross-currency (OCT Inst) legs with a 20-second leg timeout; and Verification of Payee, a PSP duty before the payer authorises a transfer under Regulation (EU) 2024/886. TIPS also settles more than SCT Inst, and T2 also processes pacs.009 (bank-to-bank credit transfer), pacs.010 (direct debit), pacs.004 (payment return) and camt.056 (revocation) on RTGS DCAs.
Liquidity Transfer Demo
Move liquidity between TARGET services. An inter-service liquidity transfer is two linked legs, one in each service, each via its own transit account: in CLM the source account is debited and the destination service dedicated transit account is credited; in the destination service the source service dedicated transit account is debited and the destination account is credited. There is one transit account per settlement currency in TIPS, and the euro transit account belongs to the ECB. A transfer between a TIPS DCA and an RTGS DCA goes via CLM, and the main cash account is not involved in that variant. Liquidity transfers use camt.050 to instruct and camt.025 as the receipt (RCON on success, RJCT on rejection), work only in the same currency, and settle or are rejected immediately. A camt.054 notification is sent to the owner of each debited or credited account, optionally on subscription, by the service that holds that account.