SGX RegCo proposes rule changes to facilitate wider adoption of broker custody accounts

26 February 2026

On 30 January 2026, Singapore Exchange Regulation (“SGX RegCo”) published a consultation paper seeking feedback on proposed rule amendments to facilitate the broader use of broker custody accounts. The consultation will close on 27 March 2026. 

Background 

Currently, while Singapore retail investors may hold their Singapore Exchange (“SGX”) securities in direct accounts with The Central Depository (Pte) Limited (“CDP”) in their own names, they hold their foreign securities in broker custody accounts. The broker custody model is the prevalent securities custody model in most major markets, where broker custody accounts are generally operated on an omnibus basis. 

In its Final Report published on 19 November 2025, the Equities Market Review Group (“Review Group”), which had been established by the Monetary Authority of Singapore to recommend measures to enhance the development of Singapore’s equities market, noted various benefits that could arise from Singapore investors adopting the same broker custody model for their SGX securities. Investors would be able to manage all their holdings (SGX-listed and foreign-listed) together through the same broker. Their brokers would be able to provide them with more value-added services, including portfolio management, fractional trading, and robo-investing, for their SGX securities. In addition, internationally active asset managers could more readily enter and be encouraged to participate more actively in Singapore’s equities market, enhancing Singapore’s competitiveness as a trading and investment hub, which could further boost interest in Singapore-listed equities. 

Proposed amendments 

Arising from the Review Group’s recommendations, SGX seeks public comment on: 

  • enabling omnibus sub-accounts for all instruments that are custodised with CDP; 
  • supporting measures for a smooth transition to a broker custody model, including: 
    • business and operational requirements for depository agents to safeguard client assets and monies and for operational robustness; 
    • requirements for depository agents to facilitate individual sub-account holders’ exercise of shareholder rights;
    • enhanced powers for CDP to inspect, investigate, and take action against depository agents for regulatory lapses; 
    • enhanced powers for CDP to request information, assistance, or action from depository agents in the interest of, among other things, investor protection and ensuring the integrity of the market; and 
    • consequential amendments to the CDP Depository Rules and the SGX-ST Rules. 

Notwithstanding the proposed changes, retail investors may choose to continue using direct accounts even after the changes take effect. 

Reference materials 

The consultation paper is available on the SGX website www.sgx.com.