Definitions for "Delivery versus payment"
Keywords:  cod, dvp, versus, receipt, simultaneous
A transaction in which the buyer's payment for securities is due at the time of delivery (usually to a bank acting as agent for the buyer) upon receipt of the securities. The payment may be made by bank wire, check, or direct credit to an account.
The acronym for DVP (delivery versus payment), or transactions in which there is simultaneous transfer of cash and securities following the trade. A basic feature of automated clearing and settlement, DVP reduces risk significantly: today fewer than 0.25% of all DVP instructions presented for settlement fail, on average, and even these are automatically recycled for settlement.
See: COD Transaction.