, Singapore

SGX reduces securities board lot size

From 1000 to 100 units, starting January 2015.

Retail investors will now be able to invest in a wider range of equities, including blue chips, and to build more balanced and diversified portfolios.

A recent announcement by the Singapore Exchange (SGX) reveals the SGX will reduce the standard board lot size of securities listed on SGX from 1,000 to 100 units from 19 January 2015.

The reduction will apply to ordinary shares, including shares traded on GlobalQuote, real estate investment trusts, business trusts, company warrants, structured warrants and extended settlement contracts. Existing counters with board lot sizes of 100 or less units will remain unchanged.

Magnus Bocker, CEO of SGX, said: “The reduced board lot size will benefit all investors and make it easier to invest in blue chips and index component stocks which tend to be higher-priced. It will also allow institutional investors to better manage their risk exposures through finer asset allocation of funds.”  

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