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SGX RegCo eyes smaller board lots for higher-priced stocks

The regulation proposes one-unit board lots for stocks priced above $100.

SGX Regulation is seeking feedback on proposals to reduce standard board lot sizes for higher-priced instruments traded on the Singapore Exchange.

The regulator plans to cut board lots from 100 units to 10 units for instruments priced above $10 and up to $100, and from 100 units to one unit for instruments priced above $100.

The changes follow recommendations by the Equities Market Review Group and are meant to lower the minimum cash outlay to trade higher-priced stocks.

About 30% of trading activity now comes from stocks priced above $10, said SGX Group head of equities Ng Yao Loong.

Ng added that reducing lot sizes would bring the minimum investment for some stocks down from several thousand dollars to a few hundred dollars.

Separately, SGX RegCo is also proposing to remove the requirement to align minimum bid sizes for securities and futures contracts traded in Hong Kong dollars, renminbi, and Japanese yen to those in their home markets.

The consultation closes on 13 February. If approved, the changes are expected to take effect in mid-2026.
 

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