### Question
How does COMMODITY EXCHANGES define derivatives clearing organization?


### Answer
Under *7 U.S.C. § 1a*, **derivatives clearing organization** is defined as:

> a clearinghouse, clearing association, clearing corporation, or similar entity, facility, system, or organization that, with respect to an agreement, contract, or transaction—


(i) enables each party to the agreement, contract, or transaction to substitute, through novation or otherwise, the credit of the derivatives clearing organization for the credit of the parties

#### Citation:
  - *7 U.S.C. § 1a*
  - Heading: **CHAPTER 1-COMMODITY EXCHANGES**

