Following public consultations on initiatives such as the post-trade custody model and reducing board lot sizes for certain stocks, the Singapore Exchange (SGX) announced, on July 1, that it will allow depository agents to hold SGX-listed securities on behalf of clients in omnibus broker custody accounts from July 15.
According to the bourse, the adoption of broker custody accounts continues to increase with six accounts opened for every direct account opened with the Central Depository (CDP) from October 2024 to April 2026.
“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,” says SGX.
Its regulatory arm, Singapore Exchange Regulation (SGX RegCo), will also subject depository agents to enhanced requirements and oversight to ensure retail investors opting for broker custody accounts are well served. At the same time, brokers and depository agents are expected to adhere to “minimum service standards” to facilitate the exercise of shareholder rights by their clients.
Subject to SGX RegCo’s approval, depository agents will be given some time - till the end of this year - to comply with these standards such as the handling of corporate actions and assisting attendance at shareholder meetings.
Reduction of board lot sizes
SGX will also reduce its standard board lot size for certain counters from Oct 5.
From then on, board lot sizes will be lowered from 100 units to 10 units for instruments priced above $10 and up to $100, as well as from 100 units to one unit for instruments priced above $100.
The initial reduction will take place for 11 stocks priced above $10. These stocks accounted for 35% of trading activity in the first six months of this year, says SGX. They are (in alphabetical order): DBS Group Holdings, Great Eastern Holdings, Haw Par Corporation, Jardine Cycle & Carriage, Jardine Matheson Holdings, Keppel Limited, Oversea-Chinese Banking Corporation (OCBC), Prudential PLC, SGX, United Overseas Bank (UOB) and Venture Corporation.
See also: New Global Listing Board set for mid-year debut: MAS and SGX RegCo
The exchange will conduct quarterly reviews to see if additional instruments qualify for a reduced board lot size. The next review will take place in January 2027 and consider daily close prices from July to December this year.
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.
The reductions will remain even if stocks fall below the $10 and $100 thresholds.
Minimum bid sizes for securities contracts
Finally, the minimum bid sizes for HKD-, RMB- and JPY-denominated securities contracts listed on SGX will no longer be aligned with those in their home markets from July 15. HKD refers to the Hong Kong dollar while RMB refers to the Chinese renminbi. JPY is, of course, the Japanese yen.
Changes to the minimum bid size will be communicated to members in advance, by way of a circular.
See also:
