Starting from 4th July 2011, SGX will reduce the bid size for securities. This revised minimum bid size will apply to all securities traded on SGX except for exchange traded funds, loan stocks and bonds.
For shares trading below 20 Singapore cents each, investors will be able to place bids as little as 0.1 cent wide instead of at intervals of half a cent.
For shares between 20 Singapore cents and S$1.99, the spread will be 0.5 cent instead of 1 cent.
For shares priced above $2, the minimum interval will be at 2 cents.
The lower spreads will generally be beneficial to investors and traders.
The next item on my wishlist is for SGX to allow trading of single share units on the main exchange instead of requiring us to go to the odd lots market. With everything done electronically, why do we even need shares to be traded in lots of 1000 shares?