SGX Proposal to Cut Board Lot Sizes Welcomed, but Challenges Remain

SGX board lot reform has been welcomed by market participants as a step towards improving accessibility, though challenges remain.

Singapore Exchange has proposed cutting standard board lot sizes for higher-priced securities to lower minimum investment thresholds and broaden participation.

Under the proposal, board lots would be reduced from 100 units to 10 units for securities priced above SGD10 and up to SGD100, and to one unit for those priced above SGD100, with the smaller lot remaining even if prices later fall below SGD10.

Market watchers said while the SGX board lot reform could help retail participation, factors such as trading costs, liquidity and investor behaviour may limit its overall impact.