Singapore, Feb 1, 2026, 15:14 SGT — Market closed.
- Shares of Singapore Exchange Ltd ended at S$17.63, slipping 0.17%.
- SGX RegCo has proposed rule changes to expand the use of broker custody accounts.
- Investors await the group’s half-year results later this week for guidance.
Shares of Singapore Exchange Ltd dipped 3 Singapore cents, or 0.17%, closing at S$17.63 on Friday. The drop followed a hint from its regulatory division about a potential change in how investors might hold SGX-listed stocks. The Straits Times Index also edged down by 0.5%. (ShareInvestor)
The market’s closed for the weekend, so all eyes turn to Monday: will the custody consultation spark real debate among brokers and retail investors, or fade into just another report? The exchange remains shut Sunday, reopening on the following business day. (Twelve Data)
This matters now because custody rules underpin everything else. When more holdings shift into broker custody, the “plumbing” changes, potentially impacting trading patterns, corporate actions, and even participation by overseas managers accustomed to pooled setups.
This comes as investors begin to focus on the exchange operator’s upcoming half-year results. SGX’s core earnings usually reflect activity in cash equities, equity derivatives, clearing, and the steady fees that support the ecosystem — so even a hint of a surge or slump can sway the stock.
On Friday, Singapore Exchange Regulation announced it was seeking feedback on proposed amendments to expand the use of broker custody accounts, which hold clients’ securities under a broker’s name instead of individual direct accounts. It referenced the Equities Market Review Group’s effort to modernise post-trade custody. Currently, about two-thirds of retail accounts in The Central Depository (Pte) Limited are direct accounts, with the remainder held in broker custody. “We believe it is timely for a wider adoption of the broker custody model,” said Ng Yao Loong. Tan Boon Gin added that the proposals aim to maintain robust custody standards. (ShareInvestor)
The consultation runs through March 27, according to The Business Times, with some market participants already speculating on the fallout if more investors move away from direct accounts. Ang Hao Yao of the Securities Investors Association (Singapore) noted that many investors trade via online platforms and keep their SGX-listed stocks in broker custody accounts, the paper reported. Luke Lim, chairman of the Securities Association of Singapore, told the outlet the new model might offer brokers better visibility of holdings, enabling “stronger post-trade monitoring” under regulatory oversight. (The Business Times)
For the stock, the immediate takeaway isn’t so much custody mechanics as whether reforms can boost activity in a market that’s long faced thin turnover beyond a few key names. It’s not earnings, but a structural tweak that could pave the way for them.
Competitive pressures are at play here. In bigger markets like Australia and Hong Kong, custody setups that pool client holdings are standard. ASX Ltd and Hong Kong Exchanges and Clearing both handle larger pools of international flow. SGX insists it must align with global operating norms rather than resist them.
That said, nothing is in place yet. The downside is clear: investors who prefer direct ownership could push back, intermediaries might face higher compliance costs, and a messy rollout could create confusion without boosting volumes. Plus, if global risk appetite wanes, trading volumes might drop despite improved regulations on paper.
Once trading kicks off, eyes will be on whether SGX shares draw new bets ahead of results week or if the custody announcement is already baked into longer-term valuations. Any updates on market reforms, associated costs, and their impact on participation are expected to spread quickly.
The next major event is the company’s half-year results, scheduled for Feb. 5 before the market opens. A briefing will follow at 9 a.m. Singapore time, with Loh Boon Chye and Daniel Koh taking the lead. (SGX Links)
