Lot size cut for SGX bids to stimulate equities

A change in SGX lot sizes will take place in January 2015 in a move to shore up equity turnover.

An announced change in lot sizes at the Singapore Exchange (SGX) will take place in January 2015 in a move by the exchange to retain equity turnover by appealing to the retail sector.

SGX’s equity business has been struggling with falling volumes. Daily turnover has been going down since Autumn 2013 and has fallen below US$1 billion per day.

The exchange will reduce the standard board lot size of securities listed on SGX from 1,000 to 100 units from 19 January 2015. The change will make it possible for smaller investors to buy stocks, but has little impact on institutional traders.

As we reported earlier in the month when SGX reported its results, the year-on-year fall of one fifth in equity volumes has proven a significant drag on their revenues.