Key Moments
- FINRA’s updated reporting rules for fractional share trades will take effect on February 23 for NMS stocks.
- Member firms must complete both a whole-share “Quantity” field and a new “Fractional Share Quantity” field with up to six decimal places.
- Firms that do not offer fractional trading will continue reporting trades as they do today.
Regulators Move to Close Fractional Reporting Gaps
FINRA has reminded member firms that new trade reporting rules for fractional shares go live on February 23. As a result, broker-dealers now have just over five weeks to update their systems. These changes aim to capture trade details that current infrastructure cannot record.
FINRA first announced the updates in March 2024. At that time, it noted that firms already executed fractional trades even though reporting systems did not support non-integer shares. Under current rules, for example, a trade of 100.5 shares is rounded to 101. This practice hides the true size of the transaction.
Retail Demand Reshapes Market Access
Fractional trading has changed how retail investors access equity markets. In particular, it allows investors to buy high-priced stocks with smaller amounts of money. According to the article, the global fractional investing market reached $14.3 billion in 2025. It could grow to $66.3 billion by 2032, implying a 24.5% annual growth rate.
Research cited in the article links fractional trading to a rise in small trade sizes. This trend followed rollouts by major online brokers. For instance, Swissquote added fractional trading in October 2024. Meanwhile, platforms such as Robinhood and Charles Schwab already allowed investments as low as $5 in stocks priced above $200.
Data from the third quarter of 2025 show that 45% of retail investors hold fractional positions. The trend accelerated during the COVID-19 pandemic. Since then, brokers including XTB, Interactive Brokers, Saxo Bank, Webull, and RoboMarkets have launched similar offerings. As a result, firms report higher trading activity and stronger customer engagement.
How the Dual-Field Reporting Structure Will Work
Under the new framework, firms must report fractional trades using two separate fields. The existing “Quantity” field will continue to show only whole shares. Meanwhile, a new “Fractional Share Quantity” field will display the full trade size, including fractions, with up to six decimal places.
For example, a trade of 100.573278 shares must appear as “100” in the Quantity field. In addition, firms must enter “100.573278” in the Fractional Share Quantity field. Trades involving only whole shares should leave the fractional field blank. Any report that includes an integer value in the fractional field will be rejected.
The rules also address edge cases to prevent reporting gaps. If a trade is smaller than one share and rounds down to zero, firms must enter “0.000001” in the fractional field and “1” in the Quantity field. By contrast, if a multi-share trade includes a tiny fraction below six decimals, firms should report only the whole-share amount.
| Trade Type | Actual Trade Size | Quantity Field | Fractional Share Quantity Field | Notes |
|---|---|---|---|---|
| Whole and fractional shares | 100.573278 | 100 | 100.573278 | Both fields populated; six decimal limit |
| Whole shares only | 100 | 100 | (blank) | Fractional field must remain empty |
| Very small fractional trade | 0.0000004 | 1 | 0.000001 | Minimum non-zero value required |
| Multi-share with tiny fraction | 100.0000004 | 100 | (blank) | Reported as whole shares only |
Staggered Implementation and Operational Constraints
The February 23 launch applies only to NMS stocks listed on exchanges such as NYSE and Nasdaq. However, FINRA plans to announce a later date for OTC Equity Securities. This phased rollout gives firms extra time to adjust their systems.
Firms that do not support fractional trading face no new requirements. They may continue reporting trades as before. In addition, the article notes that the National Securities Clearing Corporation does not clear fractional trades. As a result, any report combining fractions with clearing status will be rejected.
Cross-Border Regulatory Focus on Fractional Products
Regulators outside the United States are also reviewing fractional shares. In September 2024, Cyprus regulator CySEC issued guidance under MiFID II. The goal was to clarify when fractional holdings count as direct share ownership.
Looking ahead, broker activity may increase further in 2026. UK research shows that one in five adults plans to start investing with monthly amounts of £10 to £50. Fractional shares support this approach by allowing small investments while maintaining diversification.
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