Explain the Concept of "Delivery versus Payment" (DVP) in the Context of Settlement ▴ Learn

Explain the Concept of “Delivery versus Payment” (DVP) in the Context of Settlement.

Delivery Versus Payment (DVP) is a settlement mechanism that ensures the simultaneous exchange of securities (delivery) and cash (payment). It is designed to eliminate principal risk, which is the risk that one party delivers the asset but does not receive the payment, or vice versa.

This is a standard requirement for institutional settlement to protect capital and reduce systemic risk.

What Are the Risks Associated with non-DVP Settlement in Derivatives Markets?

How Does the Concept of ‘Trustless’ Exchange Relate to OTC DVP in Crypto?

How Does the Concept of ‘Delivery versus Payment’ (DvP) Function on a Blockchain?

What Is Delivery versus Payment (DVP) and How Is It Applied to Crypto Derivatives?