* If the client of a clearing participant intends to use a corresponding account to settle its accounts, the client of the clearing participant must enter into a supplementary agreement to the corresponding account contract with the Bank of Russia and an agreement with NSD on cash invoices that fulfil obligations relating to securities cleared by NSD. In December 1990, the Payment and Settlement Systems Committee (SSPC), composed of representatives of the main central banks, launched another study on the DVP. In its September 1992 report, three ways were found to achieve DvP: the “delivery against payment” system easily avoids the main risk, as it is essentially structured to avoid such events. When the DVP method is used, the delivery of securities is only made after payment. It eliminates the main risk. The risk of replacement costs is the risk of loss of unrealized profits. The un realized profit is determined by comparing the market price of the security to the contract price at the time of default. Liquidity risk refers to the risk that the party concerned will not fully discharge a commitment at maturity, but will do so on an unspecified date. Delivery versus Payment (DVP) is a specific settlement method for the securities market. In principle, it guarantees the transfer of securities only after payment.
It requires the buyer to fulfil its payment obligations before or immediately at the time of delivery of the guarantees/security rights acquired. The market crash of October 1987 drew the world`s attention to possible weaknesses in the unblocking and settlement standards. .