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

Page 11 of 31
B 153
PART IV — GOVERNANCE STRUCTURE OF GAS EXCHANGE AND CLEARING HOUSE
22.  The governance structure of the gas exchange shall be in compliance
with the rules and regulations governing the registration and operation of an
exchange as prescribed by the Securities and Exchange Commission of Nigeria.
23.—(1)  The disclosure requirements and corporate governance norms
provided in these Regulations shall apply to a gas exchange and a clearing
house in addition to those specified by the Securities and Exchange Commission
for listed companies.
(2) The board of directors of a gas exchange or a clearing house shall
confirm compliance with these Regulations in writing on a quarterly basis to
the Authority within two months from the end of each calendar quarter.
(3)  A gas exchange and a clearing house shall disclose to the Authority
its resources committed towards strengthening regulatory functions and ensuring
compliance with regulatory requirements applicable to the gas exchange or
clearing house, as the case may be.
(4)  The fees and charges levied by a gas exchange or a clearing house
shall be placed for review and approval before the oversight committee of
such gas exchange or clearing house.
24.—(1)  A gas exchange or clearing house shall adopt best practices
while formulating prudent and dynamic risk management processes based on
the changing risk profiles of the gas exchange or clearing house market.
(2)  Members shall adhere to a prudent risk management policy and
have a system for timely collection of margins from their clients.
(3)  The quantum of margins collected by members from clients shall be
at the discretion of the members, but at a minimum comply with the bye-laws
of the gas exchange.
(4)  Agas exchange shall set up sufficient funds in order to provide for
settlement of any claims, pertaining to pending arbitration cases, arbitration
awards, liabilities and claims of contingent nature, if any, and unresolved
complaints and grievances of the members, trading licensees or their clients
lying with the gas exchange or clearing house.
(5)  The  Authority may direct a gas exchange or clearing house to
prepare a comprehensive risk management framework covering aspects such
as criteria for checking the credibility of participants, margin requirement against
respective contracts, sufficiency of the Settlement Guarantee Fund and risks
related to the settlement cycle along with any other operational aspects.
Governance
structure of
the exchange
Disclosure
and
corporate
governance
norms
Risk
management
by gas
exchange or
clearing
house