Prize setter trotting around ring (7)
I believe the answer is:
rosette
'prize' is the definition.
(I've seen this before)
'setter trotting around ring' is the wordplay.
'trotting' indicates an anagram (letters walk or trot around).
'around' indicates putting letters inside.
'ring' becomes 'o'.
'setter' with letters rearranged gives 'rsette'.
'rsette' going around 'o' is 'ROSETTE'.
(Other definitions for rosette that I've seen before include "Ribbony badge" , "Political supporter's ribbon" , "Flower-like badge" , "Ribboned decoration" , "Badge of office or honour" .)