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
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

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
x
OK