Investing Updates: SGX to reduce board lot sizes to 10 units for securities above $10

Source:

https://www.theedgesingapore.com/news/eqdp/sgx-reduce-board-lot-sizes-10-units-securities-above-10

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The Singapore Exchange (SGX) will reduce the board lot size for securities priced above $10 from the current 100 units to 10 units, according to an announcement made on Nov 19 as part of the Monetary Authority of Singapore’s (MAS) equities market review. The change aims to make higher-priced stocks more accessible to retail investors and to stimulate overall trading activity. This is the first adjustment since January 2015, when board lots were reduced from 1,000 to 100 units to lower the investment threshold for blue-chip and other large-cap counters.

MAS says the smaller board lot size will allow investors to buy into a wider range of equities with lower capital outlay, helping broaden market participation. Alongside this change, SGX will introduce measures to expand the offering of investment products linked to SGX-listed securities. These include enabling portfolio management services, fractional trading, and robo-investing for SGX counters, potentially aligning Singapore’s market practices more closely with those seen in major global exchanges. Fractional trading, in particular, is expected to appeal to younger or smaller-scale investors seeking greater flexibility in position sizing.

Additionally, SGX plans to adopt a broker custody account model, which MAS notes is consistent with international norms and may attract more globally active asset managers. Despite the shift, retail investors can continue using their traditional CDP (Central Depository) direct accounts if preferred, ensuring continuity for those accustomed to existing arrangements.

SGX will conduct a public consultation in 1Q2026 before implementing the rule changes, giving market participants the opportunity to provide feedback. Overall, the adjustments are intended to modernise Singapore’s equity market structure, enhance accessibility and competitiveness, and support long-term investor engagement across retail and institutional segments.