Designated Clearing Entity [Banks & Banking] Law and Legal Definition

Pursuant to 12 USCS § 5462 (3) [Title 12. Banks and Banking; Chapter 53. Wall Street Reform and Consumer Protection; Payment, Clearing, and Settlement Supervision], the term designated clearing entity means “a designated financial market utility that is a derivatives clearing organization registered under section 5b of the Commodity Exchange Act (7 U.S.C. 7a-1) or a clearing agency registered with the Securities and Exchange Commission under section 17A of the Securities Exchange Act of 1934 (15 U.S.C. 78q-1).”