The Unit Share Market will replace the existing Odd Lot Market, which was set up to enable trading in odd lot parcels of shares that resulted from corporate actions such as rights issues, bonus issues and stock splits. The decision to establish a Unit Share Market was taken after an extensive review which included a public consultation and feedback from the broking community.
The Unit Share Market will enable the trading of odd lots in any quantity less than one board lot of the underlying share in the Ready Market. For example, for a buy order of 1060 ABC shares, 1000 shares will be executed on the Ready Market and the remaining 60 shares will be executed on the Unit Share Market. Amalgamation of trades between the Ready and Unit Share markets will be possible, whereby trades executed in the two markets for the same underlying share can be consolidated in a single contract. The "All or None" feature of the existing Odd Lot Market will be removed to allow for partial filling of orders
Board lot trading on the existing Ready Market will be maintained for those who wish to continue trading in the designated board lot sizes.
Mr Gan Seow Ann, EVP and Head of Securities Trading of SGX said, "The establishment of the Unit Share Market will improve efficiency in the trading of odd lots, and increase liquidity of the underlying shares. Retail investors will now find it easier and more convenient to trade in smaller parcels of shares. This initiative is part of our efforts to make the market more attractive to a wider spectrum of investors. We would also like to thank our market participants for their invaluable feedback during the public consultation period."
