🔥 Trending SGX Board Lot Size Reduction: What You Need to Know

The Singapore Exchange (SGX) is implementing a reduction in its board lot size for certain securities. This change aims to make investing more accessible and affordable for retail investors ⁴.

What is the SGX Board Lot Size Reduction?

Previously, the standard board lot size for securities listed on the SGX was 100 units ⁵. The new change will reduce this to 10 units for securities priced above S$10 ¹²⁵. For instruments priced above S$100, the board lot size will be reduced even further, to one unit ⁷.

This reduction means that investors will be able to buy and sell shares in smaller increments. For example, if a stock is priced at S$53, an investor previously needed to purchase 100 units, costing over S$5,300. With the new 10-unit board lot size, the same investment would cost S$537, making it significantly more affordable ⁵⁸.

The Monetary Authority of Singapore (MAS) noted that this reduction will improve investor access and boost trading activity ¹. SGX RegCo, the regulatory arm of SGX, has been consulting the public on these proposed changes, indicating a deliberate effort to enhance market participation ⁶.

When Will It Take Effect?

The reduction in board lot size for securities above S$10 from 100 units to 10 units is scheduled to take effect from October 5 ⁷.

It is important to note that the SGX will conduct a review every calendar quarter to determine if additional instruments qualify for a reduced board lot size ⁴. This indicates an ongoing commitment to optimizing market accessibility.

This is not the first time SGX has adjusted its board lot sizes. In January 2015, the standard board lot size was reduced from 1,000 units to 100 units ⁵⁸. The current reduction to 10 units for specific securities continues this trend of improving market liquidity and investor engagement.