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By using algebraic structures in a presheaf category over finite sets, following Fiore, Plotkin and Turi, we develop sound and complete models of second-order rewriting systems called second-order computation systems (CSs). Restricting the algebraic structures to those equipped with well-founded relations, we obtain a complete characterisation of terminating CSs. We also extend the characterisation to rewriting on meta-terms using the notion of
$\Sigma$
-monoid.
