SGX RegCo opens consultation on broader broker custody rules
The shift aligns Singapore with global omnibus custody standards.
Singapore Exchange Regulation (SGX RegCo) has launched a public consultation on proposed rule amendments to facilitate the wider adoption of broker custody accounts, with the consultation open until 27 March 2026.
The move follows recommendations by the Equities Market Review Group to modernise Singapore’s post-trade infrastructure and enhance market competitiveness.
SGX RegCo proposes to amend the rules governing the use of omnibus broker custody accounts and require account operators to facilitate clients’ exercise of shareholder rights.
It also plans to strengthen the regulatory framework for depository agents to ensure robust oversight, according to a press release.
Currently, about two-thirds of retail investors hold SGX-listed stocks through Direct CDP Accounts with the Central Depository, whilst the remaining third use Broker Custody Accounts, typically pooling foreign shareholdings under an omnibus structure.
For brokers, greater visibility into clients’ total holdings enables more personalised financial advice and allows for more competitive commission rates due to reduced credit risk.
The proposed changes would also align Singapore with global omnibus standards, eliminating the need for international firms to maintain separate systems and making the market more attractive to foreign capital.
“This streamlined experience supports more active investor engagement, while giving brokers greater ability to offer more value-added services and strengthen their client relationships,” said Ng Yao Loong, Head of Equities at SGX Group.