The paper presents the operating principles of the RTGSplus settlement system, designed by the Deutsche Bank in cooperation with other representatives of the banking sector in Germany. The system is a response to the changes in the European money market in the recent years, in particular the introduction of a common currency and the launch of new cross-border large-amount payment systems TARGET and EURO 1.

Preparations to establish the RTGSplus commenced in 1999; the following year was devoted to installing and testing the system, a phase which involved its future clients. At present the system is at its implementation stage and is to be initiated, within its basic functions, in September 2001. The new system is to replace two older ones: the ELS (the German RTGS-type system) and EAF. The latter will cease to operate as soon as RTGSplus is put in place, while ELS will continue up till 2004.

RTGSplus will be the first RTGS system combining the features of a netting and gross settlement system. Its task will be to settle large-amount euro payments. The system boasts a very modern design and meets the latest standards of service and the accessibility. Its architecture will be based on SWIFT; RTGSplus will be equipped with mechanisms optimizing the liquidity required to settle the payments. It will operate on the basis of intraday accounts (accounts opened at the beginning of a banking day and closed down at the end). Transfer of funds into these accounts will be effected through the ELS and cross-border systems such as TARGET or EURO 1.

As the launch of the RTGSplus approaches, Deutsche Bank is unfolding a wide-scale promotional campaign - addressed at both central and commercial banks. Central banks outside the euro zone could gain indirect access to TARGET through RTGSplus. This, however, might invalidate the idea of applying for direct access. Deutsche Bank has developed several methods to enable foreign banks to access TARGET through RTGSplus.