Nigeria: SEC frowns at trading platforms facilitating access to trading in foreign markets.

SEC on Thursday released a circular relating to online platforms that facilitate access to trading securities listed in the markets.

The circular, titled "Proliferation of Unregistered Online Investment and Trading Platforms Facilitating Access to Trading in Securities Listed in Foreign Markets," started by recognizing several online investment providers platforms in the country that facilitate direct access to securities listed in foreign markets.

The circular was referring to platforms like Bamboo, Trove, Chaka and Rise. These platforms, offer Nigerians access to stocks, bonds and other securities in both local and international markets.

These platforms, according to the circular, claim to be operating with Capital Market operators (CMOS) registered with the commission, and according to the commission, only foreign securities listed on any Exchange registered in Nigeria may be issued, sold or offered for sale or subscription to the Nigerian public.

The circular advised CMOs who work with these online platforms to desist from them based on the commission. In the words of the circular, "Accordingly, CMOs who work in concert with the referenced online platforms are hereby notified of the commission's position and advised to desist henceforth."

The circular advised the investment public to seek clarification as may be required via its established channels of communication on investment products advertised through conventional or online mediums.

Platforms like bamboo have quickly responded to this message by sending a mail to their customers reassuring them that there is nothing to be concerned about, and they are still able to carry out all their operations. They noted in the mail that if there is a change in the situation, customers will be informed and advised on the best course of action.