A central securities depository (CSD) keeps the definitive record of who owns each security of a market and settles trades by book entry between its participants’ accounts. Delivery versus payment (DVP) is the rule that the securities leg and the cash leg of a settlement become final together or not at all, so that neither party can lose the full value of the trade.
Quantitative Finance · Glossary
What is Central securities depository and delivery versus payment?
Also known as: central securities depository · delivery versus payment