Skip to main content

SGX reduces bid size, cuts trading cost (Effective 4 Jul 2011)

Singapore Exchange (SGX) will reduce the minimum bid size for securities on 4 July 2011, leading to lower trading costs for investors.

The initiative is expected to lead to a tightening of bid-ask spreads by as much as 80%. As a result, Singapore will offer one of Asia’s most cost-competitive trading environments with an estimated $1.7 billion in annual savings, based on 2010 market turnover.

Mr Chew Sutat, Head of Securities at SGX, said, “This initiative addresses our customers’ need for more cost-efficiency and trading opportunities. Tighter spreads will encourage investors to increase their participation in SGX, the best market for accessing fast-growing Asia. This will in turn enhance liquidity here in Singapore.”

To cater to the narrowing of the bid sizes, SGX will widen the Forced Order Range for all securities to +/- 20 bids from +/- 10 bids across all price ranges. Forced Order Range is a pre-execution mechanism which helps investors to avoid error trades when entering prices of orders. Any orders outside the Forced Order Range must be confirmed by the use of the Forced Key function before those orders can be submitted.

The revised Minimum Bid Size and wider Forced Order Range will apply to all securities traded on SGX except exchange traded funds, loan stocks and bonds.

Please refer to Appendix 1 for details of the changes and Appendix 2 for an illustration of cost savings for investors.


Appendix 1

Details of the changes are as follows:

Price Range (S$)
Bid Size (S$)
Forced Orders (Bids)
Bid Size (S$)
Forced Orders (Bids)
Below 0.200.005+/- 100.001+/- 20
0.20 – 0.9950.0050.005
1.00 – 1.990.010.005
2.00 – 9.990.010.01
10 and above0.020.01

SGX is also revising the Minimum Bid Size for debentures.  Details of the changes are as follows:

Price Range (S$)
Bid Size (S$)
Forced Orders (Bids)
Bid Size (S$)
Forced Orders (Bids)
All0.001+/- 300.01 or 0.001 as determined by SGX-ST+/- 30

Appendix 2

Cost savings to investors who buy or sell for an estimated $50,000 transaction:

No. of Shares*
Existing Spread
New Spread
Existing Spread Cost*
Savings ($)*
% Savings*
STI 3150BNPeCW110629
* Based on approximately $50,000 notional value

For CoscoCurrent bid/ask                       :           $1.95/$1.96
Revised bid/ask                      :           $1.950/$1.955 or $1.955/$1.960
Savings for buyer                   :           $127
Savings for seller                    :           $127
Total savings for investors      :           $254

» SGX reduces bid size, cuts trading cost | Singapore Exchange


  1. Guaranteed payday loans are also known as payday loans or bad credit loans. This type of loan allows you to obtain cash, in money, and than you don't really need to support or set up your income stream capability at the onset of the application method.


Post a Comment

Do provide your constructive comment. I appreciate that.

Popular Posts

How to stop FortiClient from starting automatically?

Installed FortiClient recently but the challenge in disabling the application/service from running automatically on every start-up annoyed me. Attempt to stop 'FortiClient Service Scheduler' only return 'Parameter is incorrect' error message.

An article on Technet help solve my trouble. To stop FortiClient from starting automatically, try the following:
Shut down FortiClient from the system tray.
Run net stop fortishield on command prompt.
Run msconfig.
On msconfig, switch to the Services tab. Clear the FortiClient Service Scheduler check box and click Apply.Run services.msc on command prompt to open up show all available services.Look for FortiClient Service Scheduler. Switch Startup type to Manual.Restart your computer. FortiClient should not be running automatically the next time round. Hope it helps.

Ho Ching named 5th most powerful and is mistaken as first lady by Forbes

Forbes named Singapore Prime Minister wife and CEO of Temasek Holdings, Ho Ching, as the 5th most powerful woman in the world. Ho Ching is mistaken as Singapore's first lady! OMG!

I wonder how can Forbes makes such a blunder. For a complete list, refer to here.

Google Suggestion "where is" - Najib, Rosmah - Malaysia GE17

The 14th Malaysian general election held on 9 May 2018 had concluded with the incumbent Barison Nasional (BN) voted out and Najib losing his Prime Minister position. Taking over the government is the opposition party with Dr Tun Mahathir Mohamad, a former Prime Minister of Malaysia, being sworn in as the 7th Prime Minister. Dr Mahathir is now 92 years old.

So where exactly is Najib and his wife Rosmah? Even Google is showing the below when I type "where is". I bet many people are now searching for this.