Impacted Markets:
Impacted Products:
Contact Details:
Key Information:
- As announced earlier in March 2024, through FINRA Technical Notice 3/22/24, FINRA is set to implement improvements to its equity trade reporting systems to accommodate the reporting of fractional share quantities. These enhancements will necessitate updates to FINRA’s trade reporting guidance, further detailed in the previously issued Trade Reporting Notice. This initiative is being executed in collaboration with the Unlisted Trading Privileges (UTP) and Consolidated Tape Association (CTA) Securities Information Processors (SIPs) to ensure the dissemination of fractional share quantities for NMS stocks.
- In alignment with this announcement, the UTP SIP will implement changes to enable fractional share trade reporting coinciding with the rollout of FINRA’s revised trade reporting guidance. The anticipated timetable for FINRA’s updates is now projected to be no earlier than the third calendar quarter of 2025.
- The updated specifications regarding UTP SIP changes can be found on the UTP Plan webpage, with these changes set to be applied as a “Hot Cut” release.
What is Changing?
This initiative aims to enhance the existing UTP SIP product by adding support for fractional share trade reporting. The UTP Processor will introduce the following implementations to facilitate this Change Request.
Modifications to UTP Trade Data Service
- Support for fractional share amounts as small as one millionth of a share (0.000001 shares) for any trade report or subsequent action will be introduced.
- New UTDF messages to accommodate both whole and fractional shares (in a single volume field) will replace current UTDF messages, including:
- Trade report (current day)
- Trade cancel/error
- Trade correction
- Prior-day as-of trade report
- Closing trade summary
- Total consolidated and market center volume
Subscribers are advised to review the forthcoming changes to message formats that will be introduced with the “Hot-Cut” release. As is typical with any hot-cut release, data subscribers should be ready to process both the old and new formats to accommodate any potential fallback.
Who Needs to Prepare for Testing of the New UTP Trade Data “Hot-Cut” Services?
Direct Data Feed Recipients must prepare for the new UTP Trade Data Services, while Indirect Data Feed Recipients should anticipate a smooth transition managed by their Data Feed Provider.
UTP Trade Messages Cutover Requirements
- The transition to the new UTDF messages will occur as a “hot cut”, meaning that from the first day of the enhancement, new messages will replace all existing messages related to trade reports and share volumes, covering all reported trades (including whole shares, fractional shares, and mixed reporting).
- All direct data recipients must be ready to process the new messages on the specified cutover date to avoid losing access to trade data.
What is the timeline for this enhancement?
Update Timing: Q3 2025 The UTP SIP and SIAC are collaborating with the UTP Operating Committee and FINRA to develop a release schedule that ensures a smooth transition. The implementation date for the fractional share enhancements will occur no sooner than the third calendar quarter of 2025.
The UTP SIP and SIAC will closely engage with the industry to facilitate testing and readiness.
What are the testing opportunities?
The UTP Processor will provide additional Vendor Alerts as further information on implementation schedules and testing opportunities becomes available.
Who should I contact for more information?
