Data frame clipping clips the graticule (in layout view) in addition to any data displayed in the data frame. Instructions provided describe how to create a graticule with a non-rectangular border.
In layout view, add a graticule to the data frame. For help on this, refer to the "Adding Grids and Graticules" section of the ArcGIS online help.
Define the polygon outline that is used to define the clip boundary/non-rectangular graticule border. This can either be a polygon data source that is added to the data frame, or a polygon graphic drawn in data view using the drawing tools on the Draw toolbar. In either case, make sure that the polygon has a hollow fill so the underlying features can be seen.
In the Data Frame Properties dialog box, select the Data Frame tab. In the Clip to Shape section, check Enable.
Click Specify Shape to access the Data Frame Clipping dialog box.
A. If the polygon outline is defined using a polygon data source, select Outline of Features and select the appropriate polygon layer from the Layer drop-down list.
B. If the polygon was drawn using the drawing tools on the Draw toolbar, select Outline of Selected Data Graphics by going to the Data Frame properties and selecting the Data Frame tab. Enable the Clip to Shape checkbox and specify the selected graphic as the shape to clip with.
Click OK to close all dialog boxes. The graticule border and the data frame's contents is clipped to the outline of the shape specified.