SEC to Enforce Stricter Forex Trading Rules at Summit

The Securities and Exchange Commission (SEC) of Nigeria is preparing to implement stricter regulations for companies involved in online foreign exchange and contracts for differences (CFDs) trading aimed at retail customers. These proposals will be presented at a Regulation Forum during the Lagos Finance Summit, scheduled for October 14 to 16 at the Landmark Event Centre in Victoria Island, Lagos.

Under the proposed framework, market-making brokers will be required to maintain a minimum paid-up capital of N3 billion, while brokers operating an electronic communication network (ECN) must hold at least N2 billion. Trading platform providers will face the highest requirement of N5 billion.

Additionally, the SEC plans to mandate that customer funds be kept separate from brokers' funds to safeguard traders in case of financial issues. The SEC also aims to enhance oversight of offshore platforms targeting Nigerian traders without local supervision.

Musa Kabul, head of marketing and promotion at the Lagos Finance Summit, emphasized the importance of the forum for stakeholders to engage with the proposed regulations.