Singapore, Jan 23, 2026, 15:29 SGT — Regular session
- Shares of Singapore Exchange climbed roughly 1% in afternoon trading
- SGX is looking to reduce minimum trade sizes by cutting standard board lots for pricier instruments
- MAS launches a S$5 billion equity-market initiative amid Singapore’s drive for market reform
Shares of Singapore Exchange Ltd climbed 1.1% to S$17.49 by 3:10 p.m. on Friday, with the Straits Times Index also up 1.1%. The stock has surged roughly 46% over the last year and is hovering near its 52-week peak. (StockAnalysis)
This matters for SGX since it earns fees whenever investors trade. If shifts in market structure draw more retail money toward higher-priced stocks, cash-equities turnover and fee revenue could rise, regardless of stagnant headline prices.
A board lot is just the smallest unit you can trade. But when share prices rise, that minimum can quickly turn a modest stake into a hefty sum, making it tougher for new investors to diversify their cash across different stocks.
Singapore Exchange is proposing to slash standard board lot sizes from 100 units to 10 for securities priced between S$10 and S$100, and down to a single unit for those above S$100. The move would extend beyond stocks to include REITs, business trusts, and other listed instruments. Ng Yao Loong, head of equities, highlighted that roughly 30% of trading activity involves counters over S$10, adding the changes would reduce minimum investment amounts “to just a few hundred” dollars. The consultation period ends on Feb 13, with a possible rollout by mid-2026 if the market agrees. SGX also plans to remove a rule linking minimum bid sizes for certain HKD, RMB, and JPY securities and futures to their home markets. (The Straits Times)
Bloomberg reported Friday that the Monetary Authority of Singapore has launched a S$5 billion programme to bolster local stocks. JPMorgan Asset Management, Avanda, and Fullerton are among the first to receive a total of S$1.1 billion. Ng Kok Song, founding partner of Avanda, said the initiative has “the wind” at its back. The report pointed out, however, that SGX cash-market trading averages around S$1.5 billion daily, lagging behind Hong Kong and India. Chan Kum Kong, SGX’s head of capital market development, warned the programme is “not the magic bullet” and that structural reforms remain necessary to keep up momentum. (The Edge Singapore)
The minimum bid size, known as the tick size, plays a key role in shaping market dynamics. Adjusting it can tighten spreads and speed up the matching of bids and offers, particularly in markets dominated by small trades.
Lower entry tickets don’t automatically translate into higher turnover. If volatility remains subdued and investors continue favoring overseas markets or passive products, the boost to SGX’s cash-equities volumes may prove modest.
Plumbing issues remain. Increasing one-unit board lots for the priciest stocks might boost “odd-lot” trades — those smaller than the standard lot — which could clutter order books if market-makers don’t step up.
Investors are keeping an eye on the consultation period, waiting to see if SGX can refine the rules without causing unforeseen issues. The next key date is the Feb 13 deadline for public comments.
