A system, a closure, and method of sealing a percutaneous puncture in an artery. The system includes a conventional introducer sheath, a hemostatic puncture closure, and an instrument for deploying the closure. The instrument includes a tubular carrier storing the closure. The carrier has a distally located free end to be extended through the puncture and its associated tract. The closure comprises a rigid anchor, a compressed collagen plug, and a thin filament connect the two in a pulley-like arrangement. The carrier is operated to eject the plug through the puncture and to then draw it against the free end of the introducer. The instrument and introducer are then withdrawn together to pull the anchor against the tissue contiguous with the puncture on the inside of the artery. Further withdrawing of the introducer and the instrument draws the plug out of the carrier into the puncture tract, whereupon it moves with respect to the anchor and into engagement with the outside of artery wall contiguous with the puncture to seal the puncture. The carrier also includes a tamper which is used to mechanically deform the plug within the tract. Once positioned the hemostasis occurs rapidly, thereby locking the closure device in place.