Free of payment (FOP)

Roles that need it

• Settlements Analyst
• Custody Operations Analyst
• Collateral Management Analyst
• Investment Operations Analyst

Skills it belongs to

• Settlement and fails management
• Custody and asset servicing

Related concepts

• DVP (Delivery versus payment)Delivery versus payment (DVP) is a settlement mechanism that links the transfer of securities to the transfer of cash, so that delivery happens if and only if payment happens. It removes principal risk in securities settlement and is the standard for trades settled in central securities depositories and TARGET2-Securities (T2S).
• Settlement matchingSettlement matching is the comparison of the buyer's and seller's settlement instructions by the settlement system before settlement, field by field (securities, quantity, amount, dates, accounts). Only matched instructions can settle. The Central Securities Depositories Regulation (CSDR) requires CSDs to offer matching tools and tolerances for small cash differences.
• CustodianA custodian is a financial institution, usually a bank, that holds securities and cash on behalf of clients, settles their trades and services the assets through corporate actions, income collection, tax relief and reporting. A global custodian covers many markets through its own branches or a network of sub-custodians.

Sources

• CPMI glossary, BIS (external site) accessed 31 Oct 2026
• ECB glossary (D) (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.