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DVP Service

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dvpservicelandingpage

Within the DVP Service section of the Learning Center, you can learn about:

  • the Auction Takedown Service,
  • DVP buy / sell transactions,
  • DVP Repo transactions,
  • DVP trade matching and comparison,
  • DVP netting and settlement,
  • DVP fail management,
  • DVP Funds Only Settlement (FOS), and 
  • the DVP schedule of timeframes.

You may also review DVP Repo Service-related reference documents and DVP Repo Service Frequently Asked Questions.

Select topics from the DVP Service menu at left to learn more. Please log in to view this content.

The DVP Service offered by FICC’s Government Securities Division (GSD) supports and facilitates the submission, comparison, risk management, netting and settlement of trades executed by its Members in the U.S. Government securities market. The service supports the clearance and settlement of buy/sell transactions on U.S. Government securities, repo transactions and Treasury auction takedown purchases and secondary market trades.

All eligible Netting Members of GSD may use the Netting and Settlement service. In addition to Netting Member services, GSD services another category of members known as Comparison-only members. GSD’s comparison services for Comparison-only members, does not include risk management, netting or settlement services for their trades.

Members are required to submit all their netting-eligible trades to GSD. This includes cash buy/sell transactions with a next day settlement or and extended settlement up to 365 days, repo/reverse repo transactions that are overnight, forward-starting or term repos with a settlement date of up to 735 days (2 years) and U.S. Treasury auction purchases. Trades are received, validated and compared through FICC's Real-Time Trade Matching (RTTM®) service. This results in the evidence of a valid, binding and enforceable contract between counterparties whose trades have been compared, and it is at time of comparison that FICC provides a guaranty of settlement for all Netting Members. Then through netting on the night before settlement, GSD establishes a single net long or short position for each participant’s daily trading activity in a given security. The netting output is communicated to GSD's Netting Members. The resulting obligations generated represent receive and deliver obligations that are settled on a delivery versus payment (DVP) basis over the Fedwire or through GSD's clearing banks.

Eligible Security Types

The below securities are eligible for comparison and netting under the DVP Service:

  • U.S. Treasury Bills, Bonds and Notes,
  • U.S. Treasury Inflation Protected Securities (TIPS),
  • U.S. Treasury Segregated Trading Registered Interest and Principal Securities (STRIPS),
  • U.S. Treasury Floating Rate Notes (FRNs), and
  • Non Mortgage-Backed U.S. Agency Securities (fixed rate and zero coupon securities only).
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dvptrainingguides

We encourage you to check out the DVP training and RTTM® user gudes listed below. These documents provide visual representations of the DVP RTTM Web application, training materials explaining FOS calculations, trade matching, etc.... and details on DVP reports generated for participants.

You will need to be logged in to access these guides.

DVP Reporting Guides 

DVP Participant Reporting User Guide

DVP Training Guides 

pdf DVP FOS Dealer View Overnight Repo Trade - Example (594 KB)

pdf DVP FOS Dealer View Term Repo Trade - Example (961 KB)

pdf DVP FOS Sponsored Account View Overnight Repo Trade - Example 1 (476 KB)

pdf DVP FOS Sponsored Account View Overnight Repo Trade - Example 2 (554 KB)

ler View Term Trade Usage Scenario (704 KB)

pdf DVP FOS Dealer View Overnight Cash Trade - Example (544 KB)

pdf DVP FOS Dealer View Term Cash Trade - Example (1.38 MB)

pdf Forward Mark Calculation on a DVP Repo Trade (135 KB)

pdf Dealer to Dealer DVP Repo RTTM Flowcharts (153 KB)

pdf Broker to Dealer DVP Repo RTTM Flowcharts (157 KB)

pdf DVP FOS Frequently Asked Questions (192 KB)

pdf DVP FOS Key Terms Frequently Asked Questions (136 KB)  

DVP RTTM User Guides

pdf DVP RTTM Web Front End User Guide

pdf GSD RTTM® Web Front End (WFE) Advanced Query Quick Reference User Guide (1.14 MB)

pdf RTTM Web Common Elements (117 KB)

pdf GSD DVP RTTM® Web Front End (WFE) Remote Access Coordinator (RAC) User Guide (1.91 MB)

pdf DVP RTTM Key Function Pathways (141 KB)

pdf DVP RTTM WFE Home Page Reference Guide (166 KB)

Subcategories

This section provides a central location for all the FAQs and their answers related to the DVP Service provided of GSD.

Please select the FAQ topic your are interested in learning more about from the dropdown menu located to the left of this article or use the search function provided at the top of the page.