On 25 August 2014, the Singapore Exchange Limited (the “SGX”) announced that the standard board lot size for securities listed on the Mainboard and Catalist of the Singapore Exchange Securities Trading Limited (the “SGX-ST”) will be reduced from the existing 1,000 to 100 units with effect from 19 January 2015.
The new standard board lot size of 100 units will apply to:
- ordinary shares (including shares traded on GlobalQuote);
- real estate investment trusts;
- business trusts;
- company warrants;
- structured warrants;
- extended settlement contracts; and
- two specified exchange traded funds, namely, SPDR STI ETF and ABF SG Bond Fund.
The existing board lot size of the following securities remains unchanged:
- preference shares;
- company shares with board lot size of 100 or less units;
- exchange traded funds (except the funds specified above);
- American Depository Receipts; and
- fixed income instruments (including Singapore Government Securities).
The following materials relating to the above development are available on the SGX website www.sgx.com:
- Press release dated 25 August 2014
- FAQs on reduction of board lot size
- Amendments to the SGX-ST Mainboard and Catalist Listing Rules
This development follows an earlier SGX consultation paper issued in August 2013 which sought comments on the proposal to reduce the standard board lot size for securities listed on the SGX-ST Mainboard and Catalist. For a summary of the SGX consultation paper, please click here for an article entitled “SGX seeks comments on proposal to reduce standard board lot size from 1,000 to 100 units” that was featured in a previous issue of the Allen & Gledhill Financial Services Bulletin (September 2013).