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Reducing Board Lots on the SGX

On 17 January 2015, the Singapore Stock Exchange (SGX) implemented a change in the minimum board lot size from 1000 to 100. Prof Michael Aitken, CEO of CMCRC asks the question, "in the wake of this change,how did the change impact market quality?"

Professor Mike Aitken, CEO, CMCRC has used the Market Quality Dashboard (MQD) to evaluate whether the change in board lots has made any discernable difference to market quality. The analysis showed that stocks with higher prices have experienced significant declines in their average trade size whereas stocks with lower prices exhibited almost no change. This result was unsurprising given that higher priced stocks are more likely to be impacted by the minimum board lot.