DVP exemption - CASS Provision: Difference between revisions

The DVP exemption allows a firm a waiver from the full rigours of the CASS safe custody and [[client money]] rules or the client money rules for money or assets delivered to the firm when settling a [[delivery versus payment]] transaction. As long as the transaction takes place through a [[commercial settlement system]], is intended to settle within one business day of the client's payment or delivery, and actually does settle within the “[[DVP window]]” (a period from the intended settlement date to the close of business on the third business day thereafter).

The DVP exemption was tightened up by the {{tag|FCA}} in the great CASS overhaul following its market position paper [[PS14/9]] because the FCA was concerned about a lack of clarity/creative looseness as to:  

*what a "[[commercial settlement system]]" is in practice, as it was not defined. Reaction: [[Commercial settlement system|define it]].

{{seealso}}