what is delivery versus payment dvp 
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 understanding delivery versus payment dvp the delivery versus payment settlement system ensures that delivery will occur only if payment occurs the system acts as a link between a funds transfer system and a securities transfer system from an operational perspective dvp is a sale transaction of negotiable securities in exchange for cash payment that can be instructed to a settlement agent using swift message type mt 543 in the iso15022 standard 1the use of such standard message types is meant to reduce risk in the settlement of a financial transaction and allow for automatic processing ideally the title to an asset and payment are exchanged simultaneously this may be possible in many cases such as in a central depository system such as the united states depository trust corporation 