; and (2) in paragraph (7)— (A) in the paragraph heading, by striking Exceptions and inserting Application of clearing requirement ; (B) by striking subparagraphs (A) and (B) and redesignating subparagraph (C) as subparagraph (A); (C) in subparagraph (A) (as so redesignated)— (i) by striking clause (i) and inserting the following: (i) In general In this subsection, the term financial entity means the following: (I) Institutions not statutorily exempted (aa) A financial institution. (bb) A swap dealer. (cc) A security-based swap dealer. (dd) A major swap participant. (ee) A major security-based swap participant. (ff) A commodity pool that is required to be operated by a commodity pool operator registered with the Commission, or a foreign person that would be such a commodity pool if the foreign person were organized under the laws of the United States or any State. (gg) An investment company (as defined in section 3 of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3 )), or a foreign person that would be such an investment company if the foreign person were organized under the laws of the United States or any State. (II) Private funds A private fund as defined in section 202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80–b–2(a)), or a foreign person that would be such a private fund if the foreign person were organized under the laws of the United States or any State. (III) Other persons Such other persons the Commission determines by rule to be predominantly engaged in activities that are financial in nature. In making such a determination, the Commission may consider section 4(k) of the Bank Holding Company Act of 1956. The Commission shall promulgate regulations to carry out this subclause. ; (ii) in clause (iii), by striking Such definition and inserting The term