Singapore Exchange Regulation (“SGX RegCo“) has implemented and will implement the following market structure reforms this year:
- from 15 July 2026, allowing depository agents to hold Singapore Exchange (“SGX“) listed securities on behalf of clients in omnibus broker custody accounts;
- from 15 July 2026, minimum bid sizes for HKD-, RMB- and JPY-denominated securities contracts listed on Singapore Exchange Securities Trading Limited (SGX-ST) will no longer be aligned with those in their home markets; and
- from 5 October 2026, reducing the standard board lot size:
- from 100 units to 10 units for instruments priced above S$10 and up to S$100; and
- from 100 units to 1 unit for instruments priced above S$100.
This development follows positive feedback from market participants in an earlier public consultation. For a background on these changes, please refer to our January 2026 Legal Update titled “SGX RegCo Consults on Reduction of Board Lot Size and Removal of Foreign Currency Bid Size Alignment“.
Custody Model Changes
Broker custody accounts have seen significant uptake, and this change aligns Singapore with global custody norms and should attract more international intermediaries while expanding investor choice.
Depository agents and brokers must meet new minimum service standards. Subject to SGX RegCo’s approval, depository agents may be given time to comply with these standards – covering matters such as handling of corporate actions and assisting attendance at shareholder meetings – which must be in place by the end of the year.
Reduced Board Lot Sizes
SGX will conduct quarterly reviews to identify additional qualifying instruments, with the first review set for January 2027. Any changes to the board lot size 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.
Board lot size reductions will remain even if stocks fall below the $10 and $100 thresholds.
Click on the following link for more information:
- SGX Media Release titled “SGX custody structure enhancements to take effect from July, board lot reduction in October” (available on the SGX Group website at www.sgxgroup.com)
If you have any queries on the above, please reach out to our team set out on this page.
For regional Capital Markets matters, please see Rajah & Tann Asia’s Capital Markets Practice for more information.
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