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What is a DvP Settlement?

Using the Platform

Last updated 3 years ago

What is a DvP Settlement?

Everything you need to know about DvP.


Delivery Versus Payment (DvP) is a common settlement method that ensures shares are only delivered to an investor when payment has been secured. This form of settlement is effected by the ASX's CHESS system (Clearing House Electronic Sub-register System). It does this electronically by simultaneously transferring legal ownership of the shares with the transfer of funds. This is distinct from a 'manual' settlement where an investor will transfer funds to an issuer and receive shares directly from the registry. 

DvP is designed to avoid settlement risk, where one party might fail to deliver on their side of the transaction.

Example: Fresh DvP Process

  1. Allocation Outcome: Investors will be notified of their allocation outcome via email with instructions on the DvP settlement process.

  2. Offer Letter: Investor receives an offer letter and DvP CARD from Fresh Equities.

  3. Broker Arrangement: Investor signs the offer letter and submits the CARD form to their broker for processing at least two days before settlement day. Your broker will arrange payment with you - funds are usually drawn from your linked settlement account. If your broker is CommSec, we will pass on your signed offer letter on your behalf and they will take your signature as authorisation for the trade.

  4. Fresh Booking: Fresh Equities (via our clearer, Finclear) puts out a DvP message to your broker.

  5. Broker Booking: Just prior to the settlement date, your broker puts out a matching DvP message to Fresh Equities.

  6. Settlement Day: At 11am shares and funds are swapped in the CHESS system. This is when the ‘temporary’ shares should be visible in your brokerage account denoted by the XX on the end of the stock code.

  7. Allotment Day: The date dictated by the ASX for the share registry to transform the temporary shares to ordinary shares. This is when the shares become tradable and the XX is removed from the end of the stock code. 

Note: this example is meant to be illustrative only and may change depending on the offer, share registry and broker. Brokers typically give a grace period of around 1-2 days after settlement day to transform the temporary shares to ordinary shares. 

Some Things to Note

  • Fresh does not handle shares at any point along the settlement period. Fresh facilitates the trade on settlement day, with the management of allotment assigned by the ASX to the share registry and your chosen broker. This means your shares go directly from the company to your brokerage account attached to your bidding entity. Your broker is responsible for making the shares visible in your trading account.

  • Not all brokerage accounts will support DvP. The design of this settlement method means that your broker will be taking some degree of risk. As a result, some brokers limit the use of DvP to premium/HNW/private accounts where they have an established relationship with the investor. 

  • Most full-service brokerage accounts will by default support DvP - please check with your broker prior to bidding or reach out to the Fresh Equities Settlements Team via

For more information around settlement and allotment please reach out to

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