Delivery versus payment
Encyclopedia
"Payment at the moment of delivery".
Delivery versus payment or DVP is a sale transaction of negotiable securities (in exchange for cash payment) that can be instructed to a settlement agent using SWIFT Message Type
MT 543 (in the ISO15022 standard). Use of such standard message types is intended to reduce risk in the settlement
of a financial transaction, and enable automatic processing. Ideally, title to an asset and payment are exchanged simultaneously. This may be possible in many cases such as in a central depository system such as the United States Depository Trust Corporation
Delivery versus payment or DVP is a sale transaction of negotiable securities (in exchange for cash payment) that can be instructed to a settlement agent using SWIFT Message Type
SWIFT:Message Types
SWIFT or Society for Worldwide Interbank Financial Telecommunication provides a network to allow financial and non-financial institutions to transfer financial transactions through a 'financial message'....
MT 543 (in the ISO15022 standard). Use of such standard message types is intended to reduce risk in the settlement
Settlement (finance)
Settlement of securities is a business process whereby securities or interests in securities are delivered, usually against payment of money, to fulfill contractual obligations, such as those arising under securities trades....
of a financial transaction, and enable automatic processing. Ideally, title to an asset and payment are exchanged simultaneously. This may be possible in many cases such as in a central depository system such as the United States Depository Trust Corporation