The Nigerian Stock Exchange (NSE) is making moves to give investors using the online trading portals of stock broking firms adequate protection as the exchange is coming out with new Rules in that regard. The launch of a new trading platform(XGEN) by the NSE two three years ago has made it possible for stock broking firms to introduce online trading portals to enhance investor experience.
Many firms have launched their trading portals that are linked to the NSE trading engine and enable investors trade from outside the exchange. However, aware of the risks that comes with this development, the NSE has decided to give adequate protection to investors who trade securities via stock broking firms’ portals. Consequently, the exchange is proposing new rules titled ‘Online Trading Portal’ for the market.
According to the NSE the rules are being proposed to ensure that investors who trade in securities via Dealing Members’ online portals are adequately protected against unauthorized access to their stockbroking accounts by unauthorized persons, and protected against all forms of cyber-misconduct. “The proposed Rules aim to guide Dealing Member firms on the standards, processes and basic requirements for the operation of online trading platforms.
The Rules also set out obligations and responsibilities of Dealing Members that offer online trading services, requirements on – infrastructure, know-your- client, risk management and supervisory control and disclosures to clients,” NSE said.