delivery versus payment


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Delivery versus payment

A in which the buyer's payment for securities is due at transaction the time of delivery (usually to a bank acting as agent for the buyer) upon receipt of the securities. The payment may be made by bank wire, check, or direct credit to an account.

Delivery versus Payment

A settlement procedure in which the buyer and the seller of a security agree that the seller will pay the buyer upon the security's delivery to the seller. This agreement is designed to reduce risk to both parties: if the delivery and payment do not occur at the same time there is a risk, however small, of theft by one party or the other. It is more commonly known as cash on delivery.

delivery versus payment (DVP)

A settlement procedure in which a customer instructs that he or she will make immediate payment upon delivery of the purchased security. Also called cash on delivery. Compare receive versus payment.
References in periodicals archive ?
DTCC announced recently that it would add multi-currency settlement capabilities, including Delivery versus Payment (DVP), to its Loan/SERV suite of services beginning in 2010.
NEW YORK & LONDON -- The Depository Trust & Clearing Corporation (DTCC) today announced that its Loan/SERV advisory committee has endorsed plans to add cash settlement capabilities, including Delivery versus Payment (DVP), to its Loan/SERV suite of services that is helping to automate and streamline the processing of syndicated commercial loans on a global basis.
Summary: ABU DHABI - Abu Dhabi Securities Exchange (ADX) is preparing to implement a Delivery Versus Payment (DvP) process to qualify for MSCI Emerging market index.
To deliver the best market solution, Clearstream is also preparing to offer over-the-counter (OTC) delivery versus payment (DVP) settlement in the short term (whereby delivery occurs only if and when payment occurs) while offering free of payment (FOP) settlement in the meantime.
The UAE and Qatar, both rejected twice for an upgrade, have moved to address key issues cited in MSCI's 2010 review by introducing a Delivery versus Payment (DvP) settlement system.
The solution is compliant with world's best practices in this area, such as electronic settlement with true delivery versus payment, participation of indirect participants, securities lending and borrowing and support of various settlement models.
ADX has already changed its operational procedures for Delivery versus Payment (DVP) in 2011.
Abu Dhabi: The Abu Dhabi Securities Exchange (ADX) will apply buyer cash compensation (BCC) settlement procedure from May to enhance its delivery versus payment (DVP) model, the bourse said on Saturday.
Eddie Astanin, Chairman of the Executive Board, National Settlement Depository, commented: Switching to delivery versus payment (DVP) using the link between the National Settlement Depository and Clearstream will create additional opportunities for foreign investors who conduct transactions with Russian fixed income instruments.
HE Essa Kazim said: "DFM's efforts and initiatives to further enhance its infrastructure in line with international best practices such as Delivery versus Payment (DvP), Buyer Cash Compensation and Market Making have been decisive in the upgrade of the UAE to Emerging Market status by international companies such as MSCI and S&P Dow Jones.