May 08, (THEWILL) — NGX Regulation Limited has issued stricter compliance directives for online trading platforms, warning that brokers who deploy digital systems without prior approval risk sanctions as part of efforts to strengthen investor protection and market integrity.
In a circular signed by Head of Market Regulation, Chinedu Akamaka, the regulator directed all Trading Licence Holders (TLHs) to obtain written approval before launching, upgrading, or migrating any web-based or mobile trading platform. The move reflects growing regulatory focus on cybersecurity and operational resilience amid rising digital participation in Nigeria’s capital market.
Under the revised rules, brokers are required to implement enhanced security protocols, including Two-Factor Authentication (2FA), encryption systems, Secure Socket Layer (SSL), and HTTPS standards. Firms must also conduct penetration testing at least twice a year using NGX-approved cybersecurity providers and submit certified reports within stipulated timelines.
NGX RegCo warned that non-compliance could attract penalties starting from ₦250,000, alongside other disciplinary measures under exchange rules. Trading firms are also mandated to maintain continuous monitoring of trading activities and promptly report system failures, anomalies, or breaches.
The directive further reinforces Know Your Customer (KYC) obligations, requiring brokers to complete full verification before account activation and retain customer records for a minimum of six years. Platforms must also provide clear disclosures on investment risks and comply with rules governing advertising and market communication.
The tighter framework comes amid increased enforcement activity by NGX RegCo. The regulator recently recovered over ₦500 million in restitution for investors and imposed ₦540.37 million in penalties on listed companies for compliance breaches, underscoring a broader push to align Nigeria’s digital trading ecosystem with global standards and boost investor confidence.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
