DvP model 2 - Financial definition
Financial acronyms
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Concise definition of the term DvP model 2
A securities settlement mechanism that links a securities transfer and a funds transfer in such a way as to ensure that delivery occurs if and only if the corresponding payment occurs.
Comprehensive definition of the term DvP model 2
DvP model 2 typically settles securities on a gross basis, with final transfer of securities from the seller to the buyer occurring throughout the processing cycle, but settles funds on a net basis, with final transfer of funds from the buyer to the seller occurring at the end of the processing cycle.