### Question
How does the law define payment, clearing, or settlement activity?


### Answer
Under *12 U.S.C. § 5462*, **payment, clearing, or settlement activity** is defined as:

> an activity carried out by 1 or more financial institutions to facilitate the completion of financial transactions, but shall not include any offer or sale of a security under the Securities Act of 1933 (15 U.S.C. 77a et seq.), or any quotation, order entry, negotiation, or other pre-trade activity or execution activity

#### Citation:
  - *12 U.S.C. § 5462*
  - Heading: **CHAPTER 53-WALL STREET REFORM AND CONSUMER PROTECTION > SUBCHAPTER IV-PAYMENT, CLEARING, AND SETTLEMENT SUPERVISION**

