Library / B 2103 Federal Republic of Nigeria Official Gazette No. 205
B 2103 Federal Republic of Nigeria Official Gazette No. 205

Page 57 of 82
B 2159
(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.
135.  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, petroleum liquids trading
exchange and clearing members; and
(h)  satisfy other conditions as may be specified by the Authority.
136.  The Authority may, prior to the grant of a petroleum liquids trading
licence or clearing house authorisation, make inquiries and require the applicant
to furnish such further information or document as it may deem necessary.
Conditions
for granting a
clearing
house
authorisation
Power to
make
inquiries and
call for
information