$DBS(D05.SG)$OCBC Bank(O39.SG)$UOB(U11.SG)$ST Engineering(S63.SG)$SGX(S68.SG)$Keppel(BN4.SG)

SGX announced a series of major structural updates following public consultations. The 3 key changes rolling out are:

1. New Post-Trade Custody Model

* Omnibus Accounts: Depository agents and brokers will be permitted to hold SGX-listed securities on behalf of multiple clients in single "omnibus" broker custody accounts, aligning Singapore with global standards.

* Investor Choice: Retail investors can still choose to keep their existing direct Central Depository (CDP) accounts if they prefer.

* Tighter Oversight: SGX RegCo is implementing stricter requirements, oversight powers, and a new penalty framework to safeguard retail investors. Depository agents have until the end of the year to comply with minimum service standards, such as properly handling corporate actions and assisting clients with attending shareholder meetings.

2. Reduced Board Lot Sizes

To lower minimum investment barriers and make higher-priced stocks more affordable, SGX is slicing standard board lot sizes:

* Stocks priced between $10 and $100: Board lot sizes drop from 100 units down to 10 units.

* Stocks priced above $100: Board lot sizes drop from 100 units down to 1 unit.

* Phased Rollout & Reviews: The initial October rollout will target 11 qualifying stocks priced above $10. SGX will conduct reviews every calendar quarter (starting January 2027) to see if more instruments qualify based on their trailing six-month closing prices. Once reduced, a stock's board lot size will not revert even if its price later falls below the threshold.

3. Decoupled Foreign Currency Bid Sizes

* Independence from Home Markets: The minimum bid sizes for SGX-listed securities denominated in Hong Kong Dollars (HKD), Chinese Renminbi (RMB), and Japanese Yen (JPY) will no longer be strictly aligned with their home market rules.

* Specific changes to these bid sizes will be sent to market members via an upcoming circular.