SGX RegCo Proposes Major Changes to Board Lot Sizes in Singapore Stock Market

Key Points for Investors

• SGX RegCo is consulting the public on proposed reductions to board lot sizes for certain instruments traded on the SGX stock market.
• The proposed changes include:
  • Reducing the standard board lot size from 100 units to 10 units for instruments priced above \$10 and up to \$100.
  • Reducing the standard board lot size from 100 units to 1 unit for instruments priced above \$100.
• This move aims to lower the minimum investment required for higher-priced stocks, enhancing affordability and accessibility for retail investors.
• Potential for increased market participation and trading activity, especially among younger investors.
• SGX RegCo also proposes to remove the requirement to align minimum bid sizes of securities and futures traded in HKD, RMB, or JPY with those in their home markets.
• The public consultation closes on 13 February 2026. If supported, changes are expected to be implemented in mid-2026.

Details of the Proposed Board Lot Size Reduction

Singapore Exchange Regulation (SGX RegCo), the regulatory arm of SGX, is seeking feedback on a significant change to how shares are traded in Singapore. Specifically, SGX RegCo proposes reducing the standard board lot size for certain instruments:

• For stocks priced above \$10 and up to \$100: The standard board lot size will be reduced from 100 units to 10 units.
• For stocks priced above \$100: The standard board lot size will be reduced from 100 units to just 1 unit.

This is a strategic move backed by the Equities Market Review Group to strengthen Singapore’s equity market and respond to rising share prices of major listed companies. Currently, about 30% of trading activity is concentrated in stocks priced above \$10—a segment that has seen significant appreciation in recent years. By lowering the board lot size, SGX RegCo intends to make investing in these higher-priced stocks more accessible, reducing the minimum outlay from several thousand dollars to just a few hundred dollars.

According to Ng Yao Loong, Head of Equities at SGX Group, this change will especially benefit younger retail investors, for whom large minimum investment sizes have been a barrier to entry.

Potential Impact on Shareholders and Share Prices

• Increased Accessibility: Smaller board lots lower the entry cost for higher-priced stocks, making them affordable to a wider base of investors—including retail and younger investors. This could lead to greater demand and liquidity in these stocks.
• Broadened Investor Participation: The move could attract new investors to the market, potentially increasing trading volumes and fostering a more dynamic marketplace.
• Potential Price Sensitivity: Greater liquidity and participation may result in higher volatility and could influence share prices of affected stocks, particularly those priced above \$10 and \$100. Investors should monitor these segments closely as the change approaches.
• Possible Rebalancing: Funds and traders may seek to rebalance portfolios as access to higher-priced shares becomes easier, leading to possible shifts in demand and pricing.

Additionally, SGX RegCo proposes to remove the requirement to align minimum bid sizes of securities and futures contracts traded in Hong Kong Dollar, Renminbi, or Japanese Yen to those of their home markets. This could allow more flexibility in trading these instruments, potentially impacting pricing and liquidity for affected securities.

The consultation period for these proposals ends on 13 February 2026, with implementation targeted for mid-2026, subject to market support.

Background on SGX RegCo

SGX RegCo is the independent regulatory subsidiary of Singapore Exchange, responsible for frontline market regulation, the admission and supervision of issuers and intermediaries, trading surveillance, and policy development. SGX RegCo also oversees whistleblowing and sustainable development efforts, and has been recognized multiple times as “Exchange of the Year” for its integrity and market development initiatives.

Media Contact

For further information, media inquiries can be directed to:
Carolyn Lim, Marketing & Communications
Email: [email protected]
Tel: +65 91716648

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consider their personal circumstances before making any investment decisions. Market conditions and regulatory outcomes may change, affecting the information presented above.

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