Library / B 143 Federal Republic of Nigeria Official Gazette No. 52
B 143 Federal Republic of Nigeria Official Gazette No. 52

Page 13 of 31
B 155
(g)  current year’s profits of the gas exchange or clearing house, including
fines and penalties collected from members ;
(h)  reserves of the gas exchange or clearing house ; and
(i)  equity capital of the gas exchange or clearing house.
(4)  An outstanding obligation after depletion of the funds will be met by
contribution from members or clients in proportion to their contribution to the
Settlement Guarantee Fund :
Provided that once the clearing house is hived off, the default remedy
mechanism shall be handled by the clearing house, but the gas exchange shall
be liable to settle the default arising out of guarantee of trade such as supply
of commodity in case of default by seller or failure to take delivery of
commodity by buyer.
26.—(1)  A gas exchange shall utilise electronic trading system and
tele-communication network.
(2) The orders entered by a member of gas exchange shall be first
checked against availability of funds or collateral in the risk management
system before being accepted in the order book of the gas exchange, and
this process shall be continued even after separation of clearing function
to the clearing house.
(3)  An automated audit trail of bids, offers, and the matching of orders
or the execution of transactions on the facility shall be maintained for a period
of at least seven years.
(4)  The algorithm of the software application for price discovery shall
be in compliance with the methodology mentioned in bye-laws and rules of
gas exchange as approved by the Authority, and the gas exchange shall ensure
that the algorithm is audited by a competent third party, within three months of
its authorisation and thereafter, once in every two years and submit the findings
of the audit to the Authority.
(5)  The Authority shall audit the software application used by the gas
exchanges in operation for price discovery on a random basis.
(6) The gas exchange shall —
(a)  formulate and implement a cyber-security and cyber resilience
framework to manage risk to systems, networks and databases from cyber-
attacks and threats with the approval of its board of directors and submit it
to the Authority for information ;
(b)  carry out periodic information technology system audit for data security,
data integrity and operational efficiency each and submit its reports to the
Authority annually by 31st March in respect of the preceding financial year ;
Information
technology
infrastructure
and trading
system