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

The Securities and Exchange Commission has introduced a 5pm daily cutoff for transactions under Nigeria’s move to a T+1 settlement cycle for equities and commodities.

The new arrangement is aimed at improving settlement efficiency and aligning Nigeria’s capital market with international standards.

Under the T+1 system, eligible transactions are expected to be settled one business day after the trade date, reducing the period between execution and settlement.

The SEC said the 5pm cutoff would provide market operators with a clear timeframe for processing transactions and completing the necessary settlement activities.

The transition is expected to reduce settlement risks, improve liquidity, and strengthen investor confidence in Nigeria’s capital market.

Market participants, including brokers, investors, custodians, clearing institutions, and other operators, will be required to adjust their processes and systems to meet the new settlement requirements.

The shorter settlement cycle is also expected to improve the efficiency of post-trade operations and reduce the amount of time investors’ funds and securities remain tied up.

Industry stakeholders have welcomed the move, describing it as an important step towards modernising Nigeria’s capital market infrastructure.

The SEC urged market operators to ensure that their systems, procedures, and personnel are prepared to comply with the new requirements.

The commission said the reform would support a more efficient, transparent, and competitive market while bringing Nigeria closer to global capital market practices.