BANKING AFFAIRS

Detailed explanation-1: -Delivery versus payment (DVP) is a method of settlement for specifically the securities market. It basically guarantees the transfer of securities only after payment is made.

Detailed explanation-2: -Delivery versus payment (DVP) is a securities industry settlement method that guarantees the transfer of securities only happens after payment has been made. DVP stipulates that the buyer’s cash payment for securities must be made prior to or at the same time as the delivery of the security.

Detailed explanation-3: -The RVP process is from the seller’s point of view, meaning the seller must deliver the securities once payment has been made. The settlement process from the buyer’s point of view is called delivery versus payment (DVP) since the buyer must make the payment before or at the same time as the securities are delivered.

Detailed explanation-4: -Non-DVP trading is defined as securities trading where a client’s custodian will have to release payment or deliver securities on behalf of the client before there is certainty that it will receive the counter-value in cash or securities, thus incurring settlement risk. DVP stands for delivery versus payment.

Detailed explanation-5: -DVP – trade is settled immediately after delivery of security. DVF (free) – trade is not settled immediately after delivery of security; funds are separately wired later that day or early the next day.