SEC moves to tighten online forex trading rules

The Securities and Exchange Commission (SEC) plans to tighten regulations for online forex trading and contracts for differences at the 2026 Lagos Finance Summit. The Regulation Forum, held from October 14 to 16 at the Landmark Event Centre, aims to gather input from stakeholders such as forex brokers, banks, technology providers, and traders.

Proposed rules include higher capital requirements, tighter operational standards, and enhanced customer fund protection. Forex brokers would need a minimum paid-up capital of N3bn, while electronic communication network brokers must meet a N2bn threshold. Technology providers would face a N5bn minimum capital requirement. The SEC has not yet enacted the draft rules, which were published on September 1 following the 2025 Investments and Securities Act.

Key proposals include segregating client funds and extending regulatory oversight to offshore trading platforms targeting Nigerian residents. Operators have three months to apply for registration and six months to comply with new requirements once the rules take effect. The Regulation Forum will produce a written industry response, giving participants an opportunity to raise concerns and recommend improvements to the proposed framework.