SEC set to deliver sustained zero trade fail rate in T+1 settlement cycle—DG

The Securities and Exchange Commission (SEC) says it is focused on achieving a sustained near-zero trade-fail rate under the T+1 settlement cycle in the second half of the year.

The Director-General of SEC, Dr Emomotimi Agama, said this in a document made available to journalists in Abuja on Sunday.

He said the focus would be on full delivery-versus-payment discipline across custodians, brokers and the Central Securities Clearing System Plc (CSCS).

The DG said the early evidence of the settlement cycle since June was encouraging, adding that the commission intended to demonstrate at least a full quarter of clean settlement data.

He said foreign investors must be able to complete their currency conversion and funding within the compressed cycle without being forced into pre-funding.

According to him, we are working closely with the Central Bank of Nigeria (CBN), custodians and settlement banks to ensure same-day Forex execution and confirmation for portfolio flows.

“The Certificate of Capital Importation (CCI) process must be fully electronic, timely and predictable, so that entry and exit are seamless. The commission has formally engaged the CBN on CCI modernisation to align the regime with T+1 realities,” he said.
Regarding FTSE Russell’s decision to observe the market during the T+1 transition, Mr Agama said it was a standard index-governance practice whenever a market undertook a structural change of this magnitude.

He said the index provider was simply verifying that the shortened cycle worked as well in practice as it does on paper, particularly for foreign portfolio investors.

On the outlook for equities, fixed income securities, and alternative investments in H2, he said the market would be more selective but constructive.

“After a 47.4 per cent first half advance, some consolidation is natural and indeed healthy.

“The drivers remain intact: recapitalised banks deploying fresh capital, a strong pipeline of new listings, improving foreign participation and half-year earnings that we expect to be broadly resilient.

“For fixed income, the environment remains rewarding, with disinflation continuing and yields still elevated, real returns are positive across much of the curve, and we expect vibrant sovereign, sub-national and corporate issuance, including infrastructure and green instruments,” he said.

He listed some market reforms, including the Investments and Securities Act (ISA) 2025, which modernised the entire legal architecture, brought digital assets within the regulatory perimeter, and strengthened enforcement powers.

Others are outlawing Ponzi schemes with severe sanctions and giving investors a far stronger protective framework.

“Before year-end, investors should expect further implementation of our Capital Market Liquidity Roadmap; continued rollout of the recapitalisation of market operators to ensure intermediaries are as strong as the market they serve.

“Others are deepened sustainability and ESG disclosure standards; enhanced RegTech-driven supervision; and continued expansion of regulated digital asset admissions,” the DG said.

On regulatory credibility, Mr Agama said the commission’s task was to be transparent and firm in enforcing disclosure standards and sanctioning market abuse.

He said the commission was committed to dismantling Ponzi schemes under the expanded powers of the ISA 2025, and ensuring that every naira an investor raised was protected by a functioning rulebook. NAN