Clearing Organization Law and Legal Definition

According to 12 USCS § 4402 (2), the term clearing organization means “a clearinghouse, clearing association, clearing corporation, or similar organization--

(A) that provides clearing, netting, or settlement services for its members and--

(i) in which all members other than the clearing organization itself are financial institutions or other clearing organizations; or

(ii) which is registered as a clearing agency under the Securities Exchange Act of 1934 [15 USCS §§ 78a et seq.], or is exempt from such registration by order of the Securities and Exchange Commission; or

(B) that is registered as a derivatives clearing organization under section 5b of the Commodity Exchange Act [7 USCS § 7a-1], that has been granted an exemption under section 4(c)(1) of the Commodity Exchange Act [7 USCS § 6(c)(1)], or that is a multilateral clearing organization (as defined in section 408 of this Act [12 USCS § 4421]).”