FINRA Upgrades Systems for Around-the-Clock Trading

Why It Matters

Extended reporting hours and fractional‑share data improve market transparency and price accuracy, essential for investors and regulators as U.S. equities move toward near‑continuous trading.

Key Takeaways

• FINRA extended trade reporting to 4 a.m. ET starting March 30.
• FINRA reports over 50% of U.S. equity transaction volume.
• Fractional‑share reporting now represents about 10% of TRF prints.
• A 23‑hour, five‑day trading schedule targets December 2026 rollout.
• Enhanced real‑time data reduces phantom volume caused by rounding.

Pulse Analysis

FINRA’s decision to open its trade‑reporting facility at 4 a.m. Eastern reflects a broader industry shift toward longer trading windows. By aligning its reporting schedule with global market activity, the regulator ensures that price information from U.S. equities is captured and disseminated in near real‑time, reducing latency gaps that can disadvantage investors. This move also supports the anticipated 23‑hour, five‑day trading model slated for late 2026, positioning FINRA as a critical infrastructure provider in an increasingly always‑on market environment.

The introduction of fractional‑share reporting addresses a subtle yet significant distortion known as “phantom volume.” Previously, fractional trades were rounded to whole shares, inflating transaction size and misleading market participants. By publishing the exact fractional amount—now accounting for roughly 10% of FINRA’s TRF prints—data users gain a clearer view of true market depth and liquidity. This enhancement not only improves pricing accuracy but also aligns with academic findings that call for more granular reporting to prevent misinterpretation of trade volumes.

Looking ahead, FINRA’s infrastructure upgrades signal a proactive response to evolving trading behaviors and emerging asset classes. The extended hours require robust system preparation, database readiness, and additional staffing, underscoring the operational complexity of near‑continuous markets. As the industry moves toward a 23‑hour trading schedule, regulators and exchanges will need to coordinate on data standards, risk controls, and market‑making incentives. FINRA’s emphasis on transparency and real‑time data quality positions it to play a pivotal role in shaping the next phase of U.S. market structure, where speed, accuracy, and comprehensive coverage become competitive differentiators.