SGX should abolish 1,000-share board lot requirement

THE Singapore Exchange's (SGX) reply ("SGX considering reduced board lot size"; last Saturday) to Ms Josephine Chong's suggestion to remove the requirement for shares to be traded in board lots of 1,000 ("Let investors buy shares in any number"; Dec 20) in effect sidesteps the issue.

Ms Chong gave reasons for her suggestion and detailed some problems the 1,000-share lot requirement created for certain categories of investors.

The reply recommended exchange traded funds to investors and conducted a mini lesson on this product instead.

The 1,000-share board lot requirement is an anachronism that should be abolished sooner rather than later.

Denis Distant