Delivery Versus Payment
/dɪˈlɪvəri ˈvɜːrsəs ˈpeɪmənt/
Definitions
- (n.) A securities settlement mechanism where the transfer of securities occurs only if the corresponding payment is made simultaneously.
The broker used delivery versus payment to ensure the trade was settled securely.
Forms
- delivery versus payment
Related terms
See also
Commentary
This mechanism reduces counterparty risk by synchronizing transfer of securities and payment in a single transaction.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.