DVP exemption - CASS Provision: Difference between revisions

{{anat|cass|}}The [[DVP exemption]] allows a firm a waiver from the full rigours of the CASS [[safe custody]] and [[client money]] rules for money or assets delivered to the firm when settling a [[delivery versus payment]] transaction.  

The first thing to note is this covers money and financial instruments ''belonging to the client'' (see CASS [[6.1.1 - CASS Provision|6.1.1]]. There must be some kind of agency or trust arrangement here. If your [[broker]] acts as a [[riskless principal]], as most do, moneys and assets in its hands are amounts it [[owes]] the client under a transaction. That is to say these are the broker’s liabilities; it is not holding assets or money under some kind of [[bailment]] arrangement.