The Bank of Greece has indicated to local custodians that Real Time Gross Settlement (RTGS) will be introduced as planned from the beginning of June 2005, provided the pilot tests are successful.
Initially, the central bank will operate on line real-time settlement flow with one netting cycle at the end of the day. Settlement instructions entered into the system will request matching with relevant instructions automatically. Once trade terms are matched, the transactions will be settled by delivery against payment. The possibility of more than one netting cycle is still being discussed with the custodian banks.
There will be options for both buyers and sellers to prioritize transactions for settlement and flag them for settlement at a specific times. All participants will also be able to track the progress of transactions on-line, either through a HDAT screen or via a Web browser, because each trade sent to Bank of Greece for settlement will have a code identifying it as either matched, matched with problems (namely, insufficient cash or securities), or settled.