### Question
How is the term clearing organization defined?


### Answer
The term **clearing organization** is defined in *12 U.S.C. § 4402* as the following:

> 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

#### Citation:
  - *12 U.S.C. § 4402*
  - Heading: **CHAPTER 45-PAYMENT SYSTEM RISK REDUCTION > SUBCHAPTER I-BILATERAL AND CLEARING ORGANIZATION NETTING**

