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Finra SIE Exam - Topic 1 Question 16 Discussion

Executing trades using the delivery versus payment (DVP) settlement process requires the buyer to make a cash payment by which of the following deadlines?
B) Before or at the same time as securities being delivered
A) On the 5th business day after execution
C) No later than 3 days after the securities are delivered
D) By the agreed-upon settlement date with the issuer

Finra SIE Exam - Topic 1 Question 16 Discussion

Actual exam question for Finra's SIE exam
Question #: 16
Topic #: 1
[All SIE Questions]

Executing trades using the delivery versus payment (DVP) settlement process requires the buyer to make a cash payment by which of the following deadlines?

Show Suggested Answer Hide Answer
Suggested Answer: B

Step by Step Explanation:

DVP Process: Ensures that payment occurs simultaneously with the delivery of securities, mitigating counterparty risk. Cash payment is made before or at the time of delivery.

Incorrect Options:

A: The T+5 timeline is not standard for DVP.

C: Payment must occur at delivery, not after.

D: Settlement date agreements with the issuer are irrelevant for DVP.


FINRA Guidelines on DVP/RVP Transactions: FINRA DVP Info.

by Aron at Nov 20, 2025, 03:55 PM

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Shanda
3 months ago
I remember learning that B is the correct answer.
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Arlene
3 months ago
B aligns with my understanding of DVP.
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Winfred
3 months ago
I feel B is the standard in DVP.
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Sharee
3 months ago
I’m not so sure. D could be right too.
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Mozell
4 months ago
Agreed, B makes the most sense. Timing is crucial.
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Desmond
4 months ago
I think it's B. Cash payment must be simultaneous.
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Percy
4 months ago
Really? I always thought it was more flexible than that.
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Tequila
5 months ago
Definitely B, that's how DVP works!
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Rosita
5 months ago
Wait, I thought it was A? This is confusing.
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Arthur
5 months ago
Totally agree, B is the correct answer!
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Donette
5 months ago
Wait, we have to pay for these things? I just thought you showed up, took the stocks, and left. This DVP stuff is news to me.
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Eric
5 months ago
B is the obvious choice here. Paying before or at the same time as delivery is just common sense.
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Madalyn
5 months ago
Option B is the way to go. Gotta keep that cash and securities in sync for a smooth DVP settlement.
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Stefany
6 months ago
Definitely B. I always make sure to pay up front when buying securities. Don't want any delivery issues!
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Avery
6 months ago
B) is the correct answer. The buyer must make the cash payment at the same time as the securities are delivered to complete the DVP settlement process.
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Annamae
6 months ago
I’m pretty confident that the payment needs to be made by the agreed-upon settlement date, which makes me think option D could be correct.
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Carin
6 months ago
I thought DVP meant the payment and delivery happen simultaneously, so I lean towards option B, but I could be mixing it up with another concept.
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Carey
6 months ago
I remember practicing a similar question, and I feel like the deadline is related to the settlement date, but I can't recall the exact wording.
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Chau
6 months ago
DVP settlement, that's the one where the cash and securities are exchanged, right? I'm pretty confident the correct answer is B, since the buyer has to pay at the same time as delivery. Nailed it!
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German
7 months ago
I think the cash payment has to be made before or at the same time as the securities are delivered, but I'm not completely sure.
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Pearlene
7 months ago
It's B, cash payment has to be simultaneous with delivery.
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Rueben
7 months ago
Ugh, settlement processes are not my strong suit. Let me re-read the question and think this through step-by-step. I want to make sure I get the right answer here.
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Kiley
7 months ago
Okay, I've got this. For a DVP settlement, the buyer has to make the cash payment before or at the same time as the securities are delivered. So the answer has to be B. Feels good to have that one figured out.
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Felix
8 months ago
Hmm, I'm a bit confused on this one. I know DVP involves the exchange of cash for securities, but I'm not sure about the specific deadline for the cash payment. I'll have to think this through carefully.
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Malcom
8 months ago
I think this is asking about the timing of the cash payment in a DVP settlement. I'm pretty sure the correct answer is B, since the cash has to be paid at the same time as the securities are delivered.
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Gerald
2 months ago
I was leaning towards D, but B is clearer.
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Rachael
2 months ago
B is the standard for DVP settlements. Good call!
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Eva
3 months ago
Definitely B! Cash and securities need to match up.
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Thad
3 months ago
I agree with you, B seems right. Timing is crucial in DVP.
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Eun
7 months ago
I thought it might be A, but B makes more sense.
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