Delivery Versus Payment Secure Securities Settlement Explained
5305 reads · Last updated: December 16, 2025
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.Delivery versus payment is the settlement process from the buyer's perspective; from the seller's perspective, this settlement system is called receive versus payment (RVP). DVP/RVP requirements emerged in the aftermath of institutions being banned from paying money for securities before the securities were held in negotiable form. DVP is also known as delivery against payment (DAP), delivery against cash (DAC), and cash on delivery.
