Payments and markets glossary

Rules and procedures that determine the order in which transfer orders are released from the queue and processed – e.g. “first in, first out” (FIFO). Optimisation routines may or may not be used. See also optimisation routine, queuing

An arrangement whereby transfer orders are held in a queue by the sending participant or by the system until they can be processed in accordance with the rules of the system. In an RTGS system, payments are typically “queued” because of a lack of funds or insufficient access to intraday credit. In netting systems, payments are “queued” in order to prevent caps from being exceeded. See also cap (limit), real-time gross settlement (RTGS) system