SGX to cut board lot size for securities above $10
The change reduces the minimum holding from 100 to 10 units.
The Singapore Exchange (SGX) plans to reduce the board lot size for securities priced above $10 from 100 units to 10 units.
The change aims to minimise investment requirements, broadening investor participation and boosting trading activity, according to the Monetary Authority of Singapore (MAS).
The move follows MAS’s completion of the Equities Market Review Group’s assessment and the release of its final report.
Data from this year’s third quarter shows average daily turnover rose 16% year-on-year to $1.53b, marking the highest level since the first quarter of 2021. Trading activity in small- and mid-cap stocks increased, whilst initial public offerings have raised over $2b so far this year.
In line with this, SGX and Nasdaq have proposed a dual listing bridge, allowing companies to simultaneously access capital and liquidity in North America and Asia.
The initiative targets companies with a market capitalisation of $2b and above, an Asian nexus, and global expansion plans.