### Question
How does the law define clearing agency?


### Answer
Under *15 U.S.C. § 78c*, **clearing agency** is defined as:

> any person who acts as an intermediary in making payments or deliveries or both in connection with transactions in securities or who provides facilities for comparison of data respecting the terms of settlement of securities transactions, to reduce the number of settlements of securities transactions, or for the allocation of securities settlement responsibilities

#### Citation:
  - *15 U.S.C. § 78c*
  - Heading: **CHAPTER 2A-SECURITIES AND TRUST INDENTURES > SUBCHAPTER III-TRUST INDENTURES**

