SGX RegCo Consults on Reduction of Board Lot Size and Removal of Foreign Currency Bid Size Alignment

Executive Summary

The Singapore Exchange Regulation (“SGX RegCo“) is seeking comments regarding proposed changes to its securities market structure. Targeted for implementation in mid-2026, these changes aim to boost market participation and liquidity while supporting Singapore’s competitiveness. All comments should be submitted to SGX RegCo by 13 February 2026. These changes are in line with recommendations from the Monetary Authority of Singapore’s Equities Market Review Group to revitalise Singapore’s equities market. For more information on the other recommendations of the Equities Market Review Group, please refer to our May 2025 Legal Update titled “Boosting Singapore Equities Markets: Proposals for Streamlining Prospectus Requirements and Broadening Investor Outreach Channels, and a More Disclosure-Based Regime“.

This Update discusses the following key proposed changes:

1. Reduction in the standard board lot size from (i) 100 units to 10 units for instruments priced above S$10 but at or below S$100; and (ii) 100 units to one unit for instruments priced above S$100. This change aims to lower investment barriers, broaden investor participation, and facilitate portfolio diversification.

2. Removal of the requirement to align minimum bid sizes for Hong Kong Dollar (“HKD”), Renminbi (“RMB”), and Japanese Yen (“JPY”) securities and futures with their home markets. Instead, SGX RegCo will exercise discretion, to allow more responsive and pragmatic adjustments based on local market needs, while initially retaining current bid sizes.

Please contact our Partners listed on this page for advice on these changes and/or submission of comments to SGX RegCo.

1. Proposed Reduction of Board Lot Sizes

SGX RegCo proposes to reduce the board lot sizes for specified instruments as follows:

1. From 100 units to 10 units for instruments priced above S$10 but at or below S$100; and
2. From 100 units to 1 unit for instruments priced above S$100.

The specified instruments are stocks (excluding preference shares), stapled securities, real estate investment trusts, business trusts, company warrants excluding Special Purpose Acquisition Company warrants, and depository receipts and depository shares that are listed on SGX-ST. The proposed board lot change will also apply to instruments that are not at the standard board lot.

SGX RegCo will review the board lot sizes every calendar quarter, considering factors such as:

1. Instrument’s last traded or closing price has consistently remained within the relevant price range for the past six months or is expected to do so.
2. For instruments traded in multiple currencies, board lot size is determined based on the primary traded currency’s price.

Any changes will be announced within the first five trading days after each quarter, with implementation on the first trading day of the second month after the quarter, subject to adjustments as needed for orderly market function. To ensure a smooth transition, SGX will purge all resting orders in the order book at the close of business on the last trading day before the new board lot size takes effect.

Typically, once SGX RegCo announces a reduction in the board lot size for an instrument, the smaller board lot size will remain in effect, even if the instrument’s price should subsequently fall, subject to SGX RegCo’s overall discretion to adjust the board lot size should circumstances warrant it.

2. Proposed Removal of the Requirement to Align Minimum Bid Sizes for HKD, RMB, JPY Securities and Futures with Home Markets

At present, the minimum bid size of securities and futures contracts traded in HKD, RMB, and JPY is aligned, as far as practicable, to that applicable in Hong Kong and Japan respectively (“Alignment Requirement“) under the Regulatory Notice 8.5.2 of the SGX-ST Rules. The Alignment Requirement was to support liquidity on SGX-ST for these foreign-denominated securities, as primary liquidity for such securities was in their home market.

SGX RegCo proposes removing the Alignment Requirement because such alignment may not always be necessary and should depend on specific circumstances. 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.

SGX RegCo may determine the minimum bid sizes for HKD, RMB, and JPY securities and futures contracts, consistent with the approach for all other securities and futures contracts. SGX RegCo 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 and this will be set out in Regulatory Notice 8.5.2 of the SGX-ST Rules.

For more information, please refer to the SGX RegCo’s “Consultation Paper on Changes to Market Structure for SGX Securities Market”.  The proposed amendments to the SGX-ST Rules and Regulatory Notice 8.5.2 are set out at Appendix A to the Consultation Paper.

If you have any queries on the above, please reach out to our Contacts or KM at [email protected].