SGX proposes to reduce minimum bid sizes for securities

Posted: 01 September 2009 1856 hrs

SINGAPORE: Singapore Exchange (SGX) is proposing to reduce the minimum bid sizes for securities in certain price ranges.

This reduction will apply to securities in three price range groups – those that are below 20 cents, those between S$1 and S$1.99, and those whose price range is S$10 and above.

SGX said on Tuesday this would lower the investors' costs of trading as it allows them to quote at more optimal levels, resulting in tighter bid-ask spreads.

It said the move would also align its minimum bid sizes in those price range groups with those of other major Asian exchanges.

In addition, SGX has also proposed to apply the same minimum bid sizes for debentures and exchange traded funds.

Market participants and the public are asked to give feedback and suggestions on the proposed amendments by September 21.


- CNA/so