On a recent episode of FINRA Unscripted: Trading Around the Clock: Inside FINRA’s Trade Reporting Enhancements, FINRA executives detailed how the infrastructure behind U.S. equity markets is being expanded to accommodate longer trading hours and improve the accuracy of trade data.
Host Margherita Beale opened the discussion by pointing to the visibility, but limited understanding, of market data among investors. “Every time you check a stock price on your phone or see a ticker scroll, you’re looking at the consolidated tape,” she said, describing the real-time stream of trades across exchanges and over-the-counter markets. She added that the episode would examine “how FINRA is enhancing its systems to meet the demands of a global, always-on trading environment.”
Chris Stone, FINRA’s Vice President of Transparency Services, said his team is responsible for the systems that make that data possible. “My team is responsible for managing the real-time market systems of FINRA,” he said, including overseeing “transaction reporting in real time” and operating the mechanisms that distribute that data to the broader market.
Stone emphasized that FINRA’s role is particularly significant in off-exchange trading. “We’re really over 50% of transaction reporting volume in the national market system overall,” he said. He added that FINRA captures “virtually 100% of fixed income volume” and all trading in unlisted equities, making it a central source of market data.
That breadth, he said, is essential to maintaining transparency. “The pricing that you’re seeing in the marketplace is only as good as it is complete,” Stone said. Without FINRA’s contribution, he added, “it would be a tremendous hole in transparency.”
Beale asked how that data reaches investors, noting that the consolidated tape aggregates trading activity across venues. Stone described it as a system designed to ensure that trades executed in different locations are “consolidated and sequenced and disseminated out in real time,” allowing market participants to access a “validated view” of pricing.
The episode also focused on recent changes to FINRA’s reporting hours. Beale noted that the organization extended its trade reporting facility hours to 4 a.m. Eastern Time on March 30 and asked what drove the decision.
Stone said the move reflects broader shifts in trading behavior. “Over the last few years, there’s been heightened attention and focus on really trading around the clock,” he said, pointing to global demand for U.S. equities and the influence of markets that operate continuously. He added that FINRA’s previous schedule, which began at 8 a.m., no longer aligned with exchange activity.
The earlier start time required operational adjustments. “It’s not just flipping a switch overnight,” Stone said, explaining that extended hours involve system preparation, database readiness and additional staffing to monitor activity.
Looking ahead, Beale raised the industry’s planned transition to a 23-hour, five-day trading schedule, expected in December 2026. Stone explained the structure, noting that trading would begin Sunday evening and continue through Friday, with only brief daily pauses.
“It’s not actual 24/7 trading,” he said, but described it as “a big step for the equity markets.” He added that FINRA has made it “of the highest priority” to ensure it is prepared to support the new schedule.
The discussion also addressed changes to how trades are reported. Beale introduced FINRA’s fractional share reporting initiative, launched in February, and asked what problem it was designed to solve.
Stone said the change addressed distortions in market data caused by rounding fractional trades to whole shares. “A number of academic studies started to scrutinize what they were calling ‘phantom volume,’” he said.
He explained the issue with an example. “If you had a fraction of a $700,000 share, it goes out on the tape looking like one whole share,” which could significantly overstate the size and value of a transaction.
“The goal was to get fractions on the tape so everyone could see what the actual fractional amount was,” Stone said.
Initial results show the impact of the change. According to Stone, “about 10% of our TRF prints are fractional,” with “95% of that showing up as under one share.”
Throughout the conversation, Stone pointed to the pace of change in market structure and technology. “I feel like the cadence of change is really unprecedented,” he said, adding that regulators must adapt to developments ranging from extended trading hours to new asset classes.
Beale closed the episode by emphasizing the importance of understanding market structure. Stone said that understanding how trades are executed and reported is increasingly important. “When you do see a stock price, learn where your trade is being executed,” he said, noting that activity may occur off exchanges in the over-the-counter market.
“I think it’s key that we’re ready to move at that speed too,” Stone said.
