SGX reduces standard board lot size and enhances custody structure

3 August 2026

On 1 July 2026, Singapore Exchange (“SGX”) announced the reduction of the standard board lot size from 5 October 2026 and enhancements to the post-trade custody model from 15 July 2026. These changes are part of the recommendations of the Equities Market Review Group to enhance the development of Singapore’s equities market.

Board lot sizes

From 5 October 2026, the standard board lot size of specified instruments traded on Singapore Exchange Securities Trading Limited (“SGX-ST”) will be reduced as follows:

  • For specified instruments priced above S$10 and up to S$100: Standard board lot size reduced from 100 units to 10 units.
  • For specified instruments priced above S$100: Standard board lot size reduced from 100 units to one unit.

The changes in standard board lot size apply to the following specified 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”).

In its press release, SGX stated that the initial reduction will take place for 11 stocks priced above S$10. The board lot reduction is expected to improve affordability for retail investors and lower barriers to market participation.

A review will be conducted every calendar quarter to determine if the board lot size of additional instruments should be reduced. The next review following the October 2026 implementation will take place in January 2027 and will take into consideration daily close prices from July 2026 to December 2026.

Any board lot size reduction will be announced within the first five trading days after the end of each calendar quarter and implemented within the first five trading days of the second month after the quarter.

Generally, once SGX announces a reduced board lot size for any instrument, its board lot size will not revert to the previous larger size even if its price should subsequently fall below the S$10 and S$100 thresholds.

The above changes follow a consultation launched by SGX on 23 January 2026 seeking feedback on proposed changes to reduce the standard board lot size and 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. On 1 July 2026, SGX published its response to the feedback received. For more on the consultation paper, please read our article “SGX RegCo consults on proposal to reduce standard board lot sizes”.

Minimum bid sizes for HKD, RMB, and JPY denominated securities and futures contract

From 15 July 2026, the minimum bid sizes for securities and futures contracts traded in HKD, RMB, and JPY will no longer be required to be aligned with those in their home markets. Any changes to the minimum bid size for securities and futures contracts denominated in HKD, RMB, and JPY will be communicated to members in advance by way of a circular.

Post-trade custody model

From 15 July 2026, depository agents are allowed to hold SGX securities on behalf of clients in omnibus broker custody accounts.

This change aligns Singapore’s custody structure with global practice and is expected to make Singapore more attractive for international intermediaries and provide investors with more choices. The change could also encourage greater participation by internationally active asset managers who are accustomed to omnibus structures in other major markets but previously had to maintain a separate system to accommodate individually-segregated accounts when operating in Singapore, thereby enhancing Singapore’s competitiveness as a trading and investment hub.

SGX will also proceed with its proposal to subject depository agents to enhanced requirements and oversight, and to implement minimum service standards for brokers and depository agents to facilitate the exercise of shareholder rights by their clients.

The above changes follow a consultation launched by SGX on 30 January 2026 seeking feedback on proposed changes to facilitate the broader use of broker custody accounts. On 1 July 2026, SGX published its response to the feedback received. For more on the consultation paper, please read our article “SGX RegCo proposes rule changes to facilitate wider adoption of broker custody accounts”.

Reference materials

The following materials available on the SGX website www.sgx.com: