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Delivery versus Delivery


A securities settlement mechanism which links two securities transfers in such a way as to ensure delivery takes place against delivery- that is, the delivery of a given security occurs if – and only if – the other security in the other transfer is delivered.

In essence, a delivery versus delivery transaction is the exchange of two securities positions (for whatever purpose, e.g. exchange offers, corporate actions, substitutions of collateral – hence not necessarily a transfer of ownership), whereby the execution of either delivery depends on the other (corresponding) delivery. In which sense, such a transaction is perceived ass two linked free of payment (FOP) transactions, being dependent (contingent) on each other.

It is also known for short as DvD.



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This section covers a wide-ranging array of terms and concepts, among others, in the area of exchanges and financial marekts at large ...
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