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NGX Regulation Limited (NGX RegCo) has tightened compliance requirements for online trading platforms, warning that Trading Licence Holders (TLHs) deploying digital trading systems without prior regulatory approval could attract sanctions.

The directive was contained in a recent circular signed by the Head of the Market Regulation Department, Chinedu Akamaka, and issued to all Trading Licence Holders, highlighting regulatory moves to strengthen investor protection, cybersecurity standards, and market integrity across Nigeria’s capital market.

The revised compliance reminder mandates all brokers operating or planning to launch web-based or mobile trading platforms to obtain written approval from NGX RegCo before deployment, migration, or introduction of any new digital trading infrastructure.

The regulator also outlined stricter operational and cybersecurity obligations expected from market operators.

NGX RegCo stated that brokers must strengthen their risk management and information security frameworks to safeguard trading activities and investor data. The regulator added that firms would be expected to comply fully with prescribed cybersecurity standards and operational monitoring requirements.

The regulator further directed trading firms to maintain continuous monitoring of trading activities and promptly report system failures, anomalies, or operational breaches to the Exchange.

NGX RegCo also stressed strict compliance with Know Your Customer (KYC) requirements before account activation, with brokers mandated to retain customer records for at least six years.

The latest directive reflects NGX RegCo’s broader efforts to align Nigeria’s digital trading infrastructure with global standards while strengthening confidence in the Nigerian capital market.

NGX RegCo has intensified enforcement actions against market infractions in recent months as part of efforts to strengthen investor protection and market transparency.

The infractions identified by the regulator included wash trades, self-matching transactions, artificial price formation, and misleading market activities.

In its latest X-Compliance Report published in April, NGX RegCo imposed N540.37 million in penalties on 34 listed companies for the late submission of financial statements during the 2024/2025 compliance cycle.

According to NGX RegCo, the recoveries and sanctions underscore improvements in its surveillance systems, post-trade controls, and enforcement framework aimed at ensuring fairness, transparency, and investor confidence in Nigeria’s capital market.