Stockbrokers Get Two Months to Stop Usage of Gmail, Yahoo, Others

By Dipo Olowookere

Dealing Member Firms (DMFs) operating in the nation’s capital market have been directed by the Nigerian Stock Exchange (NSE) to discontinue to use of web based e-mail accounts such as Yahoo mail, Gmail, Hotmail amongst other as their official communication channels.

A statement signed by the Head of Broker Dealer Regulation at NSE, Mr Olufemi Shobanjo, disclosed that the use of such mails was contrary to the requirements of the minimum operating standards of the exchange, which prescribes that all DMFs should have e-mail accounts registered on private domains.

The statement said “all DMFs that currently use webmail for their official communication are hereby required to acquire a private domain and create corporate e-mails within two months from the date of this circular and notify the exchange accordingly.”

It warned that “further communication via webmails beyond September 30, 2019 will no longer be acceptable as the exchange is taking steps to permanently restrict all web based e-mails from its domain. All DMFs are required to note that compliance with this circular is mandatory.”

According to the NSE, it is taking this step considering the threats and risks of cyber-attack that can be launched through webmails,” noting that “it has become imperative to implement preventive measures to mitigate such risks.”

The stock market regulator said it observed that in recent times, cyber-attacks and threats have increased in frequency and size often leading to data breaches, business disruptions and reputational damage for business organisations.

It was one of the primary channels used by cybercriminals and hackers to infiltrate and compromise the IT systems of targeted organisations is electronic messages, stressing that most cyber-attacks involve the use of web based e-mail accounts to send malicious software or viruses (phishing) capable of compromising data and infrastructure of organisations with the attendant negative impact on confidentiality, integrity and availability of data.

The NSE said it further observed with concern that many stockbroking firms still use web based e-mail accounts despite being against the rules and would want to put an end to it.