Forex Trading: SEC To Introduce New Rules for Brokers, Platforms
- Nigeria's SEC is proposing new capital requirements for companies offering retail forex and CFD trading in the country
- Market-making brokers could need as much as N3 billion in paid-up capital under the draft framework
- The regulator plans to consult brokers, banks, and other industry players at the Lagos Finance Summit in October
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigeria's Securities and Exchange Commission (SEC) is drawing up tighter rules for companies that offer online foreign exchange and contracts for differences (CFDs) trading to retail customers, as the regulator steps up oversight of a market that has grown rapidly in recent years.
The proposals are set to be presented to industry participants at a Regulation Forum during the 2026 Lagos Finance Summit, scheduled for October 14 to 16 at the Landmark Event Centre in Victoria Island, Lagos.
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Source: Getty Images
Capital requirements at the centre of the proposals
Under the draft framework, the minimum paid-up capital a company must hold will depend on the type of operation it runs.
Market-making brokers would be required to hold at least N3 billion, while brokers operating straight-through-processing (STP) and electronic communication network (ECN) models would need a minimum of N2 billion.
Punch reports that the technology and trading platform providers would face the highest requirement, at N5 billion.
The SEC is also proposing that customer funds be kept separate from brokers' own money, a measure aimed at protecting traders if a company encounters financial difficulties.
The regulator has also indicated plans to increase oversight of offshore platforms that target Nigerian traders without operating under local supervision.
Musa Kabul, head of marketing and promotion at the Lagos Finance Summit, said the forum would allow forex brokers, introducing brokers, Central Bank of Nigeria-licensed banks, technology companies, lawyers and traders to review the SEC's proposals and submit their views before the rules are finalised.
Source: Getty Images
Who is expected at the Lagos Finance Summit
The October gathering is expected to bring together participants across Nigeria's retail forex industry.
Kabul said the consultation was important because operators needed an opportunity to engage with proposed regulations before they took effect, with the aim of ensuring the final framework was workable for businesses while protecting retail traders.
The SEC's move comes amid increased regulatory attention on online trading platforms in Nigeria, where participation in retail forex and CFD markets has expanded alongside concerns about consumer protection and the activities of unregulated offshore operators.
Traders sell dollar, pound at new exchange rates
Earlier, Legit.ng reported that naira edged higher against the US dollar in the official foreign exchange market, closing at N1,320.25/$1 on the Nigerian Foreign Exchange Market (NAFEM).
The improvement against the dollar, however, was not matched across all currencies. Against the pound sterling, the naira slipped by N1.69, ending the session at N1,789.86/£1 compared with N1,788.17/£1 previously.
The naira fared better against the euro, gaining 89 kobo to close at N1,534.52/€1.
Source: Legit.ng
