You can use the ArcMap GeoProcessing Wizard to clip points, lines and polygons of various data types (shapefiles, geodatabase feature classes and coverages). When attempting to clip an XY event layer (a layer created by taking X and Y coordinates from a table) ArcMap fatals.
Convert the XY Event layer to a shapefile before clipping.
- Right-click the XY Event layer in the table of contents (TOC)
- Select Data > Export Data
- Click the browse button
- Navigate to the folder where you want to save the data
- Name the output file and click Save
- Click OK