By Andrea Tan | Bloomberg
Singapore Exchange Ltd (SGX),
which runs the city’s stock market, is proposing to bring back a lunch
break and boost minimum bid sizes as it seeks to boost trading.
exchange operator is consulting the public on the plans, which it said
will address market conditions and balance the diverse objectives of
participants, according to a statement released Wednesday. It’s
proposing to introduce a midday trading break
from 12 p.m. to 1 p.m. SGX plans to raise the tick size for stocks and
relevant securities trading in the S$1 to S$1.99 range, to one Singapore
cent from half a cent. It also plans to widen a forced order range,
which helps to prevent error trades.
SGX also said it will mandate that companies aiming to list on its main exchange must allocate at least 5 percent of their stock offering,
or S$50 million ($35 million), whichever is lower, to small investors.
The ruling will kick in on May 2 and is aimed at having greater retail
participation. The exchange in 2016 proposed a minimum of 10 percent or as much as S$100 million be distributed to retail investors.
To read reactions to the potential return of the lunch break, click here
SGX in March 2011 scrapped the break, which lasted from 12:30 p.m. to 2
p.m. every day, saying it could help add as much as 10 percent to
volumes. The proposed midday halt is now seen to have minimal impact
with only 5.1 percent of trading done during the hour, SGX said.
For more details, click here