SEC SETS 5PM CUTOFF FOR T+1 EQUITIES, COMMODITIES TRADE

The Securities and Exchange Commission has set a 5pm daily cutoff for equities and commodities transactions as Nigeria prepares to operate under the T+1 settlement cycle.

The new rule is part of efforts to improve the efficiency of Nigeria’s capital market and align its post-trade processes with international standards.

Under the T+1 system, eligible transactions will be settled one business day after the trade date, reducing the settlement period and limiting the risks associated with delayed transactions.

The SEC said the 5pm cutoff would provide market participants with a clear timeframe for completing transactions and meeting settlement requirements.

The shorter settlement cycle is expected to improve market liquidity, reduce counterparty and settlement risks, and strengthen investor confidence.

Brokers, investors, custodians, clearing institutions, exchanges, and other market operators will need to adjust their systems and internal processes to comply with the new requirements.

Market stakeholders said the transition would require effective coordination and adequate technological readiness across the capital market ecosystem.

The SEC urged operators to ensure that their systems and procedures are prepared to meet the new timeline and avoid disruptions during the transition.

Analysts said the adoption of T+1 would bring Nigeria closer to global capital market practices and could make the market more attractive to international investors.

The commission said the reform was designed to create a faster, more efficient, and resilient market while improving the overall experience for investors and other participants.