Circles and discs circling rings (5)
I believe the answer is:
loops
'circles' is the definition.
(looping is a kind of circling)
'discs circling rings' is the wordplay.
'discs' becomes 'L-Ps' (L-P is an example).
'circling' indicates putting letters inside (circling can mean going around or containing).
'rings' becomes 'oo' (two O's - O resembles a ring).
'lps' placed around 'oo' is 'LOOPS'.
'and' acts as a link.
(Other definitions for loops that I've seen before include "Twists" , "Winds" , "Oval-shaped single coils, in a piece of thread perhaps" .)