Why is there a need to update the custody system? Retail investors of listed companies on the SGX mostly hold their local securities in direct accounts with the Central Depository (CDP) while holding overseas securities in broker custody accounts. This arrangement differs from other major markets, where investors typically hold all their securities through brokers in omnibus accounts. The adoption of custody accounts is designed to align the market with international standards and encourage greater participation by internationally active asset managers, potentially enhancing the country’s competitiveness as a trading and investment hub and, in turn, providing an additional boost to Singapore equities.
Investors in Singapore Exchange (SGX)-listed stocks may soon have greater ability to exercise their rights from broker custody or nominee accounts as part of efforts to promote the use of this account type and modernise the post-trade custody model. The initiative forms part of a broader set of recommendations announced by the equities market review group on Nov 19 to enhance the competitiveness of the domestic equities market.
Since 2024, the Straits Times Index (STI) has surged around 50% to reach all-time highs. It is currently hovering around more than 4,500 points.
