Definition 1.1. Let S be a scheme over Spf OȆ. 2 A hermitian O E -module over S is a triple (X, ι, λ) where X/S is a supersingular strict O E0 -module, ι : O E −→ End(X) an action and λ : X ∼ −→ X ∨ a principal polarization that is compatible with the Rosati involution, see Definition 3.1. The hermitian O E -module (X, ι, λ) over S is of signature (r, s) if, for all a ∈ O E , charpol(ι(a) | Lie(X))(T ) = (T − a) r (T − σ(a)) s ∈ O S [T ].Up to quasi-isogeny, there is a unique hermitian O E -module (X E0, (r,s) , ι, λ) of signature (r, s) over F.Definition 1.2. For an OȆ-scheme S, we denote by S := S ⊗ F its special fiber. Let N E0,(r,s) be the following set-valued functor on the category of schemes over Spf OȆ.To any S, we associate the set of isomorphism classes of quadruples (X, ι, λ, ρ), where (X, ι, λ) is a hermitian O E -module of signature (r, s) and whereProposition 1.3. The functor N E0,(r,s) is representable by a formal scheme which is locally formally of finite type and formally smooth of dimension rs over Spf OȆ.Two remarks are in order. First, if E 0 = Q p , then this moduli problem is of PEL-type in the sense of Rapoport and Zink, see [16]. By contrast, if E 0 = Q p , then this moduli problem is not covered by their book. This is due to the polarization λ, which is a polarization as a strict O E0 -module. We call N E0,(r,s) a relative Rapoport-Zink space since the underlying moduli problem is formulated in strict O E0 -modules as opposed to p-divisible groups.Second, the formal scheme N Qp,(1,n−1) uniformizes the supersingular locus in a certain unitary Shimura variety, see [18, Section 5]. Essentially, this follows directly from the moduli description of the Shimura variety in terms of abelian varieties. An analogous result is not known for the formal schemes N E0,(1,n−1) a priori.These two remarks motivate our main result from Part I, which we now state in a rather informal way. See Theorem 4.1 for the precise statement.Theorem 1.4. There exists an RZ-space N E0/Qp,(r,s) of PEL-type in the sense of [16] together with an isomorphismThis isomorphism is equivariant with respect to the unitary group acting on both sides.In particular, the RZ-space N E0/Qp,(r,s) is smooth over Spf OȆ. This is remarkable since we do not impose any conditions on the ramification behavior of E 0 /Q p . Instead, we impose a very specific Kottwitz condition for the moduli problem N E0/Qp, (r,s) . Namely, the Kottwitz condition has to be induced from the maximal unramified intermediate field Q p ⊂ E u 0 ⊂ E 0 at all but possibly one place ψ 0 : E u 0 ֒→Ȇ, see Definition 2.8. Our definition bears some similarity with the situation in [17, Equation (2.1)]. But note that the unramified intermediate field does not play a role in loc. cit. Instead, the authors impose the Eisenstein condition to get a regular moduli problem. A similar definition is made in [11]. Int(g) := len OȆ O Im(δ)∩Z(g) .Actually, Wei Zhang defines an intersection product for all regular semi-simple elements g ∈ U (J 1 ) rs . Then the schematic intersection ...