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Singapore Exchange (SGX) is proceeding with adjustments to the equities market structure after receiving largely supportive feedback during the public consultation process in March 2017.
Effective 13 November 2017, the equities market will break from 12.00pm to 1.00pm. In addition, the minimum bid size for relevant securities in the $1.00 to $1.99 price range will be increased to $0.01 from the current $0.005 and the forced order range for relevant securities will be widened to +/- 30 ticks from +/- 20 ticks. The adjustments are aimed at addressing market conditions while balancing the diverse objectives and interests of different segments of participants in the market ecosystem.
More than 40 respondents participated in the public consultation. A few respondents had alternative suggestions to the three adjustments proposed in the consultation. SGX gave due consideration to these suggestions and provided reasons in its “Responses to feedback to the public consultation” document [link] for proceeding with the proposals in the consultation.
“We would like to thank market participants for supporting the changes to the equities market structure. The midday break, increased minimum bid size and wider forced order range are the result of the collaborative approach the entire market ecosystem is committed to in enhancing our market. We will be monitoring the impact of these changes post-implementation,” said Loh Boon Chye, CEO of SGX.
