How Is DVP Achieved in a Traditional Securities Market? ▴ Learn

How Is DVP Achieved in a Traditional Securities Market?

DVP is typically achieved through a Central Securities Depository (CSD) or a Clearing House. The CSD holds the securities and cash accounts for participants.

When a trade settles, the CSD simultaneously debits the buyer's cash account and credits the seller's, while simultaneously debiting the seller's securities account and crediting the buyer's, ensuring atomicity.

How Do the Fees Associated with Segregated Accounts Typically Compare to Those for Omnibus Accounts?

What Is the Function of a Central Clearing House?

What Is the Role of the Clearing House in a Regulated Futures Exchange?

Can DVP Be Achieved in an Over-the-Counter (OTC) Trade without a Central Clearing House?