The Securities and Exchange Commission (SEC) has moved to tighten oversight of online foreign exchange (forex) trading in Nigeria, extending its proposed regulatory framework to both domestic operators and offshore entities that target Nigerian residents.
SEC, in its Proposed Rules On Online Forex Trading And Contract For Difference, released yesterday, said that the regulations would apply throughout Nigeria and cover all persons engaging in or offering online forex trading services to residents of Nigeria, irrespective of whether the platform or medium is incorporated in Nigeria or operates from outside the country.
The Commission said that the move is aimed at bringing operators serving Nigerian investors within a defined regulatory framework, particularly as online forex trading platforms increasingly operate across borders.
The rules identify several categories of persons as “Regulated Entities”, including Introducing Brokers, online forex brokers and broker-dealers, as well as technology and platform providers.
Significantly, the framework also captures offshore entities that provide online forex CFD trading services to Nigerians.
Source: Vanguard
