PUBLIC LAW 106-554—APPENDIX E 114 STAT. 2763A-367 "(A) is registered as a broker or dealer pursuant to section 15(b) of the Securities Exchange Act of 1934 (except paragraph (11) thereof); "(B) performs the functions commonly performed by an exchange (as defined in section 3(a)(1) of the Securities Exchange Act of 1934); "(C) does not— "(i) set rules governing the conduct of subscribers other than the conduct of such subscribers' trading on the alternative trading system; or "(ii) discipline subscribers other than by exclusion from trading; and "(D) is exempt from the definition of the term 'exchange' under such section 3(a)(1) by rule or regulation of the Securities and Exchange Commission on terms that require compliance with regulations of its trading functions."; (3) by striking paragraph (2) (as redesignated by paragraph (1)) and inserting the following: "(2) BOARD OF TRADE. —The term 'board of trade' means any organized exchange or other trading facility."; (4) by inserting after paragraph (8) (as redesignated by paragraph (1)) the following: " (9) DERIVATIVES CLEARING ORGANIZATION. — "(A) IN GENERAL.— The term 'derivatives clearing organization' means 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; "(ii) arranges or provides, on a multilateral basis, for the settlement or netting of obligations resulting from such agreements, contracts, or transactions executed by participants in the derivatives clearing organization; or "(iii) otherwise provides clearing services or arrangements that mutualize or transfer among participants in the derivatives clearing organization the credit risk arising from such agreements, contracts, or transactions executed by the participants. "(B) EXCLUSIONS. —The term 'derivatives clearing organization' does not include an entity, facility, system, or organization solely because it arranges or provides for— "(i) settlement, netting, or novation of obligations resulting from agreements, contracts, or transactions, on a bilateral basis and without a central counterparty; "(ii) settlement or netting of cash payments through an interbank payment system; or "(iii) settlement, netting, or novation of obligations resulting from a sale of a commodity in a transaction in the spot market for the commodity. "(10) ELECTRONIC TRADING FACILITY.— The term 'electronic trading facility' means a trading facility that—
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