Series 28: Book-Entry Delivery

Book-Entry Delivery

Securities today are generally issued in book-entry form and do not involve the ownership of physical certificates. Book-entry securities exist as a computer record on the books of the issuer and the investor’s broker-dealer. The sole evidence of ownership is the trade confirmation issued by the broker-dealer and the monthly statements that the brokerage firm provides.

Member firms must use the facilities of a securities depository, such as the Depository Trust and Clearing Corporation, for the book-entry settlement of securities transactions. Book-entry transactions may be settled by delivery vs. payment or receive vs. payment.

Delivery vs. payment (DVP) is an agreement that the bu