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

Page 8 of 31
B  150
(h)   have an online surveillance capability which monitors positions,
prices and volumes in real time to ensure market integrity ;
(i)  make necessary arrangements to establish connectivity with its trading
members and clearing house ;
(j)  have adequate Settlement Guarantee Fund ;
(k)  have adequate mechanism to address grievances of the members,
trading licensees and their clients and for dispute arising out of trades and
their settlement ;
(l)  have the facility to disseminate information about trades, quantities
and quote such information on its website daily and shall provide the same
to the Authority on demand ;
(m) prepare a business case ;
(n)  have adequate systems’ capacity supported by a business continuity
plan, including a disaster recovery site ;
(o)  have in its employment, sufficient number of persons having adequate
professional and other relevant experience to the satisfaction of the
Authority ;
(p) employ as key management personnel, at least two proficient
professionals having relevant qualifications, experience and expertise in oil
and gas commodities trading or exchange ;
(q)  submit the draft bye-laws and market rules to the Authority ; and
(r)  satisfy other conditions as may be specified by the Authority.
13.  An applicant seeking authorisation as a clearing house shall—
(a)  have necessary infrastructure and resources to ensure timely clearing
and settlement of trades ;
(b)  have adequate risk management mechanism ;
(c)  have the capacity to establish and publish a settlement procedure
including netting, novation and guarantee for settlement of trades in place,
as specified by the Authority ;
(d)  demonstrate the establishment of an applicable Settlement Guarantee
Fund to guarantee settlement of trades ;
(e)  demonstrate a wide network of clearing members and have adequate
facility to admit and regulate its members ;
(f )  have the facility to disseminate information about trades, quantities
and quotes in real time ;
(g)  establish connectivity with the clearing banks, gas exchange and
clearing members ; and
(h)  satisfy other conditions as may be specified by the Authority.
Conditions
for granting
a clearing
house
authorisation