Delivery Free of Payment

Accounting
Double-Entry Bookkeeping
July 20, 2023
Exchanges
DFOP
July 21, 2023

A delivery of securities which is not linked to a corresponding transfer of funds. In other words, one counterparty delivers the securities, subject matter of a transaction, to the other counterparty without any payment of funds at the time of delivery or prior thereto (free of payment, FOP).

This is opposed to delivery versus payment (DvP), or delivery versus delivery (DvD).

It is known for short as DFOP.

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