The Korea Exchange (KRX) has said it plans to lower trading units for all stocks listed on the KOSPI market from ten shares to one share.
It will be implemented from 2 June 2014, after changing regulations and completing system development.
Quantity allocation criterion for simultaneous quotations will be elevated by ten times from the current criterion.
The new arrangement will make the KOSPI similar to Korea’s KOSDAQ market, where the trading unit also is one share.
The Singapore Exchange (SGX) took steps last autumn to cut the standard board lot size for securities from 1,000 to 100 units.
In Hong Kong, the E Trading Association has suggested to the Hong Kong exchange to include fractions of a cent on some of the smaller shares and also fractional shares and fractional contracts.
“We don’t need the minimum sized lots they have in the exchanges here,” said Philip York, director of the association. “In Japan we have a variable tick size and variable lot size across the market. Why can’t I just trade one share? It’s not like we’re on the floor shouting at each other. We’re using computers.”