SGX to roll out post-trade custody model, changes to bid mechanics in July, cut board lots in October

[SINGAPORE] The Singapore Exchange (SGX) will allow depository agents to hold SGX-listed securities on behalf of clients in omnibus broker custody accounts from Jul 15, the bourse announced on Wednesday (Jul 1).

The adoption of broker custody accounts “continues to rise”, SGX noted.

It added that there were six such accounts opened for every direct account opened with the Central Depository (CDP) from October 2024 to April 2026.

An omnibus broker custody account combines the assets and trades of multiple customers under a single broker.

“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,” SGX said.

Its regulatory arm, Singapore Exchange Regulation (SGX RegCo), will subject depository agents to enhanced requirements and oversight.

It will also implement minimum service standards for brokers and depository agents to facilitate the exercise of shareholder rights by their clients.

These standards cover matters such as the handling of corporate actions and assisting attendance at shareholder meetings.

SGX said the moves are to “ensure retail investors opting for broker custody accounts are well served”.

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Subject to SGX RegCo’s approval, depository agents will be given time to comply with these standards, which must be in place by the end of the year.

Board lot sizes to be reduced

SGX will reduce its standard board lot size from Oct 5, from 100 units to 10 units for instruments priced above S$10 and up to S$100.

For instruments priced above S$100, board lot sizes will be cut from 100 units to one unit.

The initial reduction will take place for 11 stocks priced above S$10, which accounted for 35 per cent of trading activity in the first six months of this year, SGX said.

“The board lot revision is thus expected to lower barriers to market participation and improve affordability for retail investors,” it added.

The bourse will conduct quarterly reviews to determine if additional instruments qualify for a reduced board lot size, with the next review slated for January 2027.

It will also consider daily close prices from July to December 2026.

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 board lot size reductions will remain even if stocks fall below the S$10 and S$100 thresholds.

Minimum bid size changes

In addition, from Jul 15, the minimum bid sizes for Hong Kong dollar, renminbi and yen-denominated securities contracts listed on SGX will “no longer be aligned with those in their home markets”.

SGX said it will communicate changes to the minimum bid size to members in advance by way of a circular.

These changes follow public consultations, where the proposals received broad support from market participants, it added.