Put A TARGET2 (T2) settlement (euro RTGS) back in order

THE DRILL AS TEXT

1. In A TARGET2 (T2) settlement (euro RTGS), what happens first, and what follows?
   • Bank Alfa submits the payment to T2 — Bank Alfa's payments desk sends a high-value interbank payment (a pacs.009) to TARGET2, which processes it the instant it arrives rather than batching it for a later cycle. Nothing has moved yet — it is an instruction.
   • T2 checks Bank Alfa's available liquidity — TARGET2 checks whether Bank Alfa's RTGS account holds enough available liquidity — drawing on the Central Liquidity Management (CLM) component — to cover the full amount before it settles anything.
   • T2 settles the payment in central-bank money — With liquidity confirmed, T2 debits Bank Alfa's account and credits Nordbank's account at the central bank, one payment at a time. RTGS settles each accepted instruction individually, without any prior netting, and the transfer is final the instant it settles.
   • Nordbank is confirmed of the settled payment — TARGET2 tells the receiving bank that the funds are on its account at the central bank and are final, with the details of the payment it needs to apply.
   • Nordbank books the incoming funds — Because the interbank leg already settled with finality, Nordbank records the credit on its own ledger without waiting for anything else. The payment is complete end to end.