Series 7: 14.6.4. DVP/RVP Accounts

14.6.4. DVP/RVP Accounts

Delivery vs. payment (DVP), or cash on demand, simply means that delivery and payment must occur simultaneously. Receive vs. payment (RVP), or cash on delivery, is its counterpart. DVP means that a buyer does not have to pay for its purchased securities until it receives them. RVP means that a seller will not receive payment in cash until it delivers them.

A DVP/RVP account must be approved by a registered clearing agency that uses an automated confirmation and acknowledgment system. DVP accounts are generally reserved for institutional customers and dealers, whose trading activity involves large sums of money, large numbers of transactions, and a significant number of involved parties.

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