MAS S$20 Million for Market Makers, Explained

The Investing Iguana

MAS S$20 Million for Market Makers, Explained

Tue 29 Sep 2026 | Midday

The Numbers

MAS announced S$1.45 billion for fund managers and S$20 million for market makers today. Only the smaller number reaches your trading account. The S$20 million pays firms to quote tighter bid-ask spreads on around 80 small and mid-cap stocks until 31 December 2028. The spread is a cost on every trade: a 2% gap on a S$10,000 purchase costs about S$200 round-trip, against S$100 at 1%. Today's episode covers what the grant does to that gap, and why it is not a price safety net under those stocks.

My Personal Take

My first reaction to the S$1.45 billion was that it was the headline and the S$20 million was a footnote. What I almost missed is that the footnote is the only line that touches a retail trading screen. It took me a while to connect a grant paid to firms with a cost I pay myself, because the spread does not show up as a fee. I keep coming back to the S$200 on a S$10,000 purchase, since a gap like that sits unnoticed. A published figure for how much the spreads actually narrow would change how I read this. 🦖

📺 YouTube: https://youtu.be/yKTYlyKw59Y

📩 Substack: https://investingiguana.com/p/how-mas-wants-small-cap-trading-to

Not financial advice. Iggy's Forensic Compliance Standards apply.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Only the smaller number reaches your trading account. The S$20 million pays firms to quote tighter bid-ask spreads on around 80 small and mid-cap stocks until 31 December 2028. The spread is a cost on every trade: a 2% gap on a S$10,000 purchase costs about S$200 round-trip, against S$100 at 1%. Today's episode covers what the grant does to that gap, and why it is not a price safety net under those stocks.</p>\n<p></p>\n<p>My Personal Take</p>\n<p>My first reaction to the S$1.45 billion was that it was the headline and the S$20 million was a footnote. What I almost missed is that the footnote is the only line that touches a retail trading screen. It took me a while to connect a grant paid to firms with a cost I pay myself, because the spread does not show up as a fee. I keep coming back to the S$200 on a S$10,000 purchase, since a gap like that sits unnoticed. A published figure for how much the spreads actually narrow would change how I read this. 🦖</p>\n<p></p>\n<p>📺 YouTube: https://youtu.be/yKTYlyKw59Y</p>\n<p>📩 Substack: https://investingiguana.com/p/how-mas-wants-small-cap-trading-to</p>\n<p></p>\n<p>Not financial advice. Iggy's Forensic Compliance Standards apply.</p></body></html>","htmlText":"<html><head></head><body><p></p>\n<p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/0d3338a41363120a8527417a21acf55f\" tg-width=\"1536\" tg-height=\"2752\"></p>\n<p><strong>MAS S$20 Million for Market Makers, Explained</strong></p>\n<p>Tue 29 Sep 2026 | Midday</p>\n<p></p>\n<p>The Numbers</p>\n<p>MAS announced S$1.45 billion for fund managers and S$20 million for market makers today. Only the smaller number reaches your trading account. The S$20 million pays firms to quote tighter bid-ask spreads on around 80 small and mid-cap stocks until 31 December 2028. The spread is a cost on every trade: a 2% gap on a S$10,000 purchase costs about S$200 round-trip, against S$100 at 1%. Today's episode covers what the grant does to that gap, and why it is not a price safety net under those stocks.</p>\n<p></p>\n<p>My Personal Take</p>\n<p>My first reaction to the S$1.45 billion was that it was the headline and the S$20 million was a footnote. What I almost missed is that the footnote is the only line that touches a retail trading screen. It took me a while to connect a grant paid to firms with a cost I pay myself, because the spread does not show up as a fee. I keep coming back to the S$200 on a S$10,000 purchase, since a gap like that sits unnoticed. A published figure for how much the spreads actually narrow would change how I read this. 🦖</p>\n<p></p>\n<p>📺 YouTube: https://youtu.be/yKTYlyKw59Y</p>\n<p>📩 Substack: https://investingiguana.com/p/how-mas-wants-small-cap-trading-to</p>\n<p></p>\n<p>Not financial advice. Iggy's Forensic Compliance Standards apply.</p></body></html>","text":"MAS S$20 Million for Market Makers, Explained Tue 29 Sep 2026 | Midday The Numbers MAS announced S$1.45 billion for fund managers and S$20 million for market makers today. Only the smaller number reaches your trading account. The S$20 million pays firms to quote tighter bid-ask spreads on around 80 small and mid-cap stocks until 31 December 2028. The spread is a cost on every trade: a 2% gap on a S$10,000 purchase costs about S$200 round-trip, against S$100 at 1%. Today's episode covers what the grant does to that gap, and why it is not a price safety net under those stocks. My Personal Take My first reaction to the S$1.45 billion was that it was the headline and the S$20 million was a footnote. What I almost missed is that the footnote is the only line that touches a retail trading screen. It took me a while to connect a grant paid to firms with a cost I pay myself, because the spread does not show up as a fee. I keep coming back to the S$200 on a S$10,000 purchase, since a gap like that sits unnoticed. A published figure for how much the spreads actually narrow would change how I read this. 🦖 📺 YouTube: https://youtu.be/yKTYlyKw59Y 📩 Substack: https://investingiguana.com/p/how-mas-wants-small-cap-trading-to Not financial advice. 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