SGX RegCo consults on proposal to reduce standard board lot sizes: Allen & Gledhill

9 February 2026

On 23 January 2026, Singapore Exchange Regulation (“SGX RegCo”) published a consultation paper seeking feedback on proposed changes to reduce the standard board lot size of certain instruments traded on the Singapore Exchange Securities Trading Limited (“SGX-ST”). In addition, SGX RegCo proposes to remove the requirement to align the minimum bid sizes of securities and futures contracts traded in Hong Kong Dollar (“HKD”), Renminbi (“RMB”), and Japanese Yen (“JPY”) with those in their home markets. The consultation will close on 13 February 2026.

Reduction of standard board lot size

SGX RegCo proposes to reduce the size of a standard board lot as follows:

For specified instruments priced above S$10 but at or below S$100: Reduce the standard board lot size from 100 units to 10 units.
For specified instruments priced above S$100: Reduce the standard board lot size from 100 units to one unit.

The proposed board lot change will apply to the following instruments traded on SGX-ST: (i) stocks (excluding preference shares); (ii) stapled securities; (iii) real estate investment trusts; (iv) business trusts; (v) company warrants excluding special purpose acquisition company warrants; and (vi) depository receipts and depository shares that are listed on SGX-ST (collectively, “specified instruments”).

The proposed board lot change will also apply to instruments that are not at the standard board lot.

A review will be conducted every calendar quarter (starting from when the proposed change is implemented) to determine if the board lot sizes of the specified instruments traded on SGX-ST should be reduced. In determining an instrument’s price range and thus whether its board lot size should be reduced, Singapore Exchange Limited (“SGX”) will consider whether the instrument’s last traded price or closing price has been continuously in the price range for the previous six months or is likely to do so in the future. Where an instrument is traded in more than one currency, the board lot size of the instrument in both currencies will be determined based on the price of the instrument in the primary traded currency.

SGX will announce any board lot size reduction within the first five trading days after the quarter, with implementation on the first trading day of the second month after the quarter. For example, for the quarter ending on 30 September 2026, SGX will inform market participants by circular of any changes to board lot sizes between 1 and 6 October 2026, and implement any new board lot sizes on 2 November 2026. These timelines may however be adjusted to ensure orderly market operations.

To facilitate a smooth transition on the first day that an instrument trades with its new board lot size, SGX will purge all resting orders in the order book at the close of business on the last trading day before the implementation of the new board lot size.

Generally, once SGX announces a reduced board lot size for any instrument, its board lot size will not revert to its previous larger size even if the price subsequently falls, subject to SGX’s overall discretion to adjust the board lot size where circumstances so warrant.

Where the board lot size of an instrument is reduced to one unit, the instrument will no longer be available for trading in the unit share market.

The proposed board lot change will not impact SGX’s existing discretion to determine a board lot size that differs from the size of a standard board lot, for example, to align the board lot size of a secondary-listed instrument on SGX-ST with that on its home exchange.

The proposal follows the publication on 19 November 2025 of a report by the Equities Market Review Group indicating its support for reducing the board lot size of SGX traded securities that are trading above S$10, from 100 units to 10 units. A smaller standard board lot size will lower the minimum outlay required for investments. This makes higher-priced stocks more affordable and accessible to investors, which could in turn broaden investor participation and increase trading activity.

Minimum bid size for HKD, RMB, and JPY denominated securities and futures contracts

Regulatory Notice 8.5.2 of the SGX-ST Rules provides that the minimum bid size of securities and futures contracts traded in HKD, RMB, and JPY be aligned, as far as practicable, to that applicable in Hong Kong and Japan respectively (“alignment requirement”). The alignment requirement was originally introduced to support liquidity on SGX-ST for these foreign-denominated securities, as their primary liquidity was in their home market.

SGX proposes that the alignment requirement be removed as alignment is not always necessary and depends on the circumstances. For example, if minimum bid size changes are made in the home market but there is limited trading activity or only a small number of such securities on SGX-ST, it may not justify the impact on market participants to make the changes needed for alignment. With the removal of the alignment requirement, the minimum bid size for HKD, RMB, and JPY securities and futures contracts would be a matter for the exchange’s discretion, as is the case for all other securities and futures contracts. The exchange may still choose to align the minimum bid size with that in the home market. For now, SGX proposes to retain the existing minimum bid size for HKD, RMB, and JPY securities which will be set out in Regulatory Notice 8.5.2 of the SGX-ST Rules.

Regulatory Notice 8.5.2 of the SGX-ST Rules will be amended to reflect the above changes.

Target implementation date