When is the SGX new 100 lot size implementing?

[numbers]

still waiting for brokers to update on new commission rates....looks like they really going to reveal last minute.....

 

[private_invest_sg]

Perhaps there is not going to be any change wrt their rates?

 

[Sinkie]

still waiting for brokers to update on new commission rates....looks like they really going to reveal last minute.....

There won't be any change, don't need to wait lah

Reducing lot size means you can now buy abit more of stocks that's below $5 lah

Instead of buying 4000 shares or 5000 shares, you can now either buy 4100 or 4300 or 4500 le

The purpose of reducing lot size is not to encourage u to buy 100 shares of digiland or 200 shares of albedo lah..

Infact all the while there's the odd lot market that nobody use, u can actually buy 1 share of dbs, 5 shares of jardines or even 88 shares of singpost

Well, cheaper brokerage will be realized when we remove contra or when Sgx stop charging such high fee to the brokerage le

If u want to pay lesser like $10 flat then buy the odd lot market

In fact local brokerages are earning lesser money now this year

 

[agentxq49]

There won't be any change, don't need to wait lah

Reducing lot size means you can now buy abit more of stocks that's below $5 lah

Instead of buying 4000 shares or 5000 shares, you can now either buy 4100 or 4300 or 4500 le

The purpose of reducing lot size is not to encourage u to buy 100 shares of digiland or 200 shares of albedo lah..

Infact all the while there's the odd lot market that nobody use, u can actually buy 1 share of dbs, 5 shares of jardines or even 88 shares of singpost

Well, cheaper brokerage will be realized when we remove contra or when Sgx stop charging such high fee to the brokerage le

If u want to pay lesser like $10 flat then buy the odd lot market

In fact local brokerages are earning lesser money now this year

How do you find out how much brokerages are earning? I'd like to see that data and see how's sgx doing.

 

[Sinkie]

How do you find out how much brokerages are earning? I'd like to see that data and see how's sgx doing.

Just go take a look at Uobkh financial statement ba as a gauge ba

 

[Sinkie]

THE Singapore Exchange (SGX) is looking to individual investors to boost South-east Asia's biggest stock market after trading volume last year tumbled the most since the 2008 global financial crisis.

The bourse will cut the standard lot size for equity transactions to 100 shares from 1,000 shares on Jan 19, a move that the Society of Remisiers says will make Singapore stocks more affordable for investors seeking to trade in smaller parcels.

The average value of shares traded daily on SGX tumbled 25 per cent to $1.05 billion last year as investors deserted the market after an unexplained US$6.9 billion (S$9.1 billion) plunge in the value of three commodity companies over three days in October 2013. Trading volume fell 37 per cent in 2008 at the height of the global financial crisis.

"Retail investors had been buying the small caps because they are more affordable, but many have been burnt following the penny stock crash and have stayed away from the market," said Mr Ernest Lim, a trader with CIMB Securities in Singapore.

"Cutting the board lot size will likely attract such investors back to the market."

The smaller transaction size was announced by regulators in August as part of efforts to restore market confidence following the penny stock rout. It means an investor will only have to spend $2,059 to make a trade in DBS Group Holdings at Wednesday's closing price, excluding broker fees, versus $20,590 under current rules.

The bourse will also impose a minimum trading price of 20 cents on mainboard shares as low-priced securities are more susceptible to excessive speculation and potential market manipulation, according to the August statement. Investors will have to lodge collateral worth 5 per cent of trades and provide more information about short positions.

While the change is encouraging, some investors could be put off by trading disruptions at SGX in recent months, said Mr Jason Hughes, head of CMC Markets in Singapore.

On Dec 3, the bourse opened its securities market 31/2 hours late because of a software error, less than a month after halting trading for more than two hours on Nov 5 due to a power supply failure, triggering a public apology from chief executive Magnus Bocker and criticism from the financial regulator.

"The damage from these outages is going to be larger than any benefit from reducing the board lot sizes," Mr Hughes said. "Given that the outages happened in a short period of time, it certainly had an impact on SGX's reputation."

SGX shares are poised for a 7.9 per cent gain in 2014, against the Bloomberg World Exchanges Index's 3.8 per cent advance.

The benchmark Straits Times Index has climbed 6.3 per cent, while the MSCI Singapore Small Cap Index fell 5.7 per cent, declining for a second year.

"Cutting the board lot sizes should help encourage more retail investors to enter the market," said Mr Jimmy Ho, president of the Society of Remisiers, which represents brokers who work entirely on commissions.

"Retail investors can now afford to buy the more expensive blue chip shares, which were previously out of reach for some retail investors. These are more attractive and less risky investments than penny stocks."

The number of young professionals starting to invest in the stock market has been increasing, Ms Lynn Gaspar, head of retail investors at SGX, said recently.

About 29 per cent of the 71,000 individuals who opened new trading accounts with the bourse's Central Depository in the past 12 months were aged 25 and under, compared with 19 per cent three years ago, she said.

The reduction of the minimum board lot "really opens up the market in a big way and allows the average Singaporean to be included", she said. "We see more investors moving into the blue chips, existing and new ones."

One such investor is student Michael Thong, 20, who has just started his national service. He was accompanied on Dec 18 by his brother Christopher to open his first stock trading account at a Phillip Securities' branch.

"I have done well in the stock market," said Mr Christopher Thong, 27, an airforce pilot who started buying shares 10 years ago with $3,000 in capital, which has grown to a six-figure sum. "I'm encouraging my brother to get started. He has a lot of time to read up on finance and investing in the army camp."

Mr Nicholas Wong, who started working as a remisier a year ago with Phillip Securities, Singapore's largest brokerage by number of clients, said he is getting more interest from new investors ahead of the change. There were 1.66 million trading accounts with the Central Depository as of the end of November, compared with 1.3 million in 2008, according to SGX data.

"So far, I've got a number of retail investors opening new trading accounts, ahead of the reduction in board lot size," Mr Wong said as he helped a new client fill out documents at the brokerage's HQ in the central business district. "This would benefit retail investors with smaller budgets."
- See more at: http://www.straitstimes.com/premium...-trading-volume-20150101#sthash.wdyPUzwz.dpuf

 

[InterestingStuff]

fug sgx, commissions and local brokers commission & fees too high, cant compete with overseas brokers
for china A shares, even IB can buy now using hk shanghai connect ( few stocks and big cap) , i wonder what are the fees like for poems, uob , vickers etc

 

[felixleong]

They reduce lot size to 100 but i am strongly disappointed that local brokerage houses still charge a min commission of $25. It only makes sense if they bring down the min comm to say $5 or $10

 

[Sinkie]

They reduce lot size to 100 but i am strongly disappointed that local brokerage houses still charge a min commission of $25. It only makes sense if they bring down the min comm to say $5 or $10

Use Scb to invest lah, no $25 minimun commission to affect you

Anyway it's not a must to make 100 shares per lot size by the brokerages also, by making changes to their system, they have to pay their vendor and also engage man hours to do testing etc so if by implementing means they have to reduce comm and their revenue, I bet the whole Remiser society and the brokerages union (which Scb is not part of it) will hold consensus not to implement this 100 shares per lot size le lah

However, It also make sense to reduce or remove gst/coe/bus/personal tax and mrt fare, taxi flagdown fee and other also Cpf Minimun sum too

But I like this change, now I can use 100 shares to test and countparty or buy 1300 shares of kepcorp le instead of 1000 shares of kepcorp le wooo

 

[felixleong]

Use Scb to invest lah, no $25 minimun commission to affect you

It also make sense to reduce or remove gst/coe/bus/personal tax and mrt fare, taxi flagdown fee and other also Cpf Minimun sum too

Wait till they force us to increase employee Cpf to 25%-30%

I just feel unjust for the newer investors, myself not affected by min comm so prefer put inside cdp

 

[wahkao3]

But I like this change, now I can use 100 shares to test and countparty

know the counter party got what advantage? useful meh?

 

[Sinkie]

I just feel unjust for the newer investors, myself not affected by min comm so prefer put inside cdp

Well, I guess sgx is trying their best to make use of retailers to boast their number and volume also and hope one day they came to realise that it's $25 Minimun comm that's affecting the liquidity and preventing investor from coming in and not the lot size

Then what they can do is to
1) force brokerages to remove min commission which will lead to brokerages to close down or merge
2) reduce the service fee they charge brokerages in order to allow brokerages to survive and affecting their profit line

 

[Sinkie]

know the counter party got what advantage? useful meh?

Why not useful? U know who buying or who seling ma

If I know angmo selling a lot, I help angmo sell first lor etc many other strategies

 

[felixleong]

Ya if example u trying to test market, u sell 1 lot and find that the buyer is goldman sach and the stock is already up 2% today on strong volume

Question here is, u see buyer goldman u now dare to short ma?

Probably not and instead u might wanna long to, and try to be nimble and ninja kill a few bits while letting goldman "push" the stock

The idea something like that, dunno i explain well or not

 

[Asphodeli]

They reduce lot size to 100 but i am strongly disappointed that local brokerage houses still charge a min commission of $25. It only makes sense if they bring down the min comm to say $5 or $10

Use Scb to invest lah, no $25 minimun commission to affect you

Anyway it's not a must to make 100 shares per lot size by the brokerages also, by making changes to their system, they have to pay their vendor and also engage man hours to do testing etc so if by implementing means they have to reduce comm and their revenue, I bet the whole Remiser society and the brokerages union (which Scb is not part of it) will hold consensus not to implement this 100 shares per lot size le lah

However, It also make sense to reduce or remove gst/coe/bus/personal tax and mrt fare, taxi flagdown fee and other also Cpf Minimun sum too

But I like this change, now I can use 100 shares to test and countparty or buy 1300 shares of kepcorp le instead of 1000 shares of kepcorp le wooo

StanChart doesn't even need to lift a finger, just pump money for marketing, lol. The rest of the brokerage houses will probably take 3 months to implement changes to lure customers

 

[Asphodeli]

THE Singapore Exchange (SGX) is looking to individual investors to boost South-east Asia's biggest stock market after trading volume last year tumbled the most since the 2008 global financial crisis.

The bourse will cut the standard lot size for equity transactions to 100 shares from 1,000 shares on Jan 19, a move that the Society of Remisiers says will make Singapore stocks more affordable for investors seeking to trade in smaller parcels.

The average value of shares traded daily on SGX tumbled 25 per cent to $1.05 billion last year as investors deserted the market after an unexplained US$6.9 billion (S$9.1 billion) plunge in the value of three commodity companies over three days in October 2013. Trading volume fell 37 per cent in 2008 at the height of the global financial crisis.

"Retail investors had been buying the small caps because they are more affordable, but many have been burnt following the penny stock crash and have stayed away from the market," said Mr Ernest Lim, a trader with CIMB Securities in Singapore.

"Cutting the board lot size will likely attract such investors back to the market."

The smaller transaction size was announced by regulators in August as part of efforts to restore market confidence following the penny stock rout. It means an investor will only have to spend $2,059 to make a trade in DBS Group Holdings at Wednesday's closing price, excluding broker fees, versus $20,590 under current rules.

The bourse will also impose a minimum trading price of 20 cents on mainboard shares as low-priced securities are more susceptible to excessive speculation and potential market manipulation, according to the August statement. Investors will have to lodge collateral worth 5 per cent of trades and provide more information about short positions.

While the change is encouraging, some investors could be put off by trading disruptions at SGX in recent months, said Mr Jason Hughes, head of CMC Markets in Singapore.

On Dec 3, the bourse opened its securities market 31/2 hours late because of a software error, less than a month after halting trading for more than two hours on Nov 5 due to a power supply failure, triggering a public apology from chief executive Magnus Bocker and criticism from the financial regulator.

"The damage from these outages is going to be larger than any benefit from reducing the board lot sizes," Mr Hughes said. "Given that the outages happened in a short period of time, it certainly had an impact on SGX's reputation."

SGX shares are poised for a 7.9 per cent gain in 2014, against the Bloomberg World Exchanges Index's 3.8 per cent advance.

The benchmark Straits Times Index has climbed 6.3 per cent, while the MSCI Singapore Small Cap Index fell 5.7 per cent, declining for a second year.

"Cutting the board lot sizes should help encourage more retail investors to enter the market," said Mr Jimmy Ho, president of the Society of Remisiers, which represents brokers who work entirely on commissions.

"Retail investors can now afford to buy the more expensive blue chip shares, which were previously out of reach for some retail investors. These are more attractive and less risky investments than penny stocks."

The number of young professionals starting to invest in the stock market has been increasing, Ms Lynn Gaspar, head of retail investors at SGX, said recently.

About 29 per cent of the 71,000 individuals who opened new trading accounts with the bourse's Central Depository in the past 12 months were aged 25 and under, compared with 19 per cent three years ago, she said.

The reduction of the minimum board lot "really opens up the market in a big way and allows the average Singaporean to be included", she said. "We see more investors moving into the blue chips, existing and new ones."

One such investor is student Michael Thong, 20, who has just started his national service. He was accompanied on Dec 18 by his brother Christopher to open his first stock trading account at a Phillip Securities' branch.

"I have done well in the stock market," said Mr Christopher Thong, 27, an airforce pilot who started buying shares 10 years ago with $3,000 in capital, which has grown to a six-figure sum. "I'm encouraging my brother to get started. He has a lot of time to read up on finance and investing in the army camp."

Mr Nicholas Wong, who started working as a remisier a year ago with Phillip Securities, Singapore's largest brokerage by number of clients, said he is getting more interest from new investors ahead of the change. There were 1.66 million trading accounts with the Central Depository as of the end of November, compared with 1.3 million in 2008, according to SGX data.

"So far, I've got a number of retail investors opening new trading accounts, ahead of the reduction in board lot size," Mr Wong said as he helped a new client fill out documents at the brokerage's HQ in the central business district. "This would benefit retail investors with smaller budgets."
- See more at: http://www.straitstimes.com/premium...-trading-volume-20150101#sthash.wdyPUzwz.dpuf

Hooo boy. Retail investor stampede coming...

 

[Asphodeli]

Ya if example u trying to test market, u sell 1 lot and find that the buyer is goldman sach and the stock is already up 2% today on strong volume

Question here is, u see buyer goldman u now dare to short ma?

Probably not and instead u might wanna long to, and try to be nimble and ninja kill a few bits while letting goldman "push" the stock

The idea something like that, dunno i explain well or not

No big deal, I ever buy from GS before and I make money. Sold to JPM before also and exit with my capital investment, phew!

Nowadays, however, hardly see them on the market...back in 2008/2009 there were alot of ang moh brokerage firms buying up depressed shares...

 

[Sinkie]

StanChart doesn't even need to lift a finger, just pump money for marketing, lol. The rest of the brokerage houses will probably take 3 months to implement changes to lure customers

Eh, Scb has been around for like 4 years le lah lol

 

[Sinkie]

No big deal, I ever buy from GS before and I make money. Sold to JPM before also and exit with my capital investment, phew!

Nowadays, however, hardly see them on the market...back in 2008/2009 there were alot of ang moh brokerage firms buying up depressed shares...

Eh, Scb trading can see Counterparty de ah?

Come to think of it, I hardly hit cp 41, dont know what cp will I hit if sell to or buy from those who using Scb no min comm people or maybe Scb not using their own cp when they execute orders from their retailers ba

 

[Asphodeli]

Eh, Scb trading can see Counterparty de ah?

At that time I was mainly using POEMS...nowadays mostly SCB. In 2014 only three trades done with POEMS...

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