US-based trading app Robinhood failed to disclose data on certain stock trades for more than a year, Reuters reported on Thursday.
The data relates to stock trades executed under its fractional-share service launched in December 2019.
Fractional shares allow investors to hold partial shares of a company’s stock. Instead of spending $650 on a Tesla share, one can spend a much lower amount to own a portion or fraction of a share.
Financial brokerages are required to publicly disclose all trades, including those smaller than a share, to trade-execution facilities under Financial Industry Regulatory Authority (FINRA) and Securities and Exchange Commission rules, Reuters said.
The regulations allow all market participants to fairly assess share prices.
But Robinhood didn’t report its fractional share trades until the week of January 25, 2021, Reuters said, citing analysis of FINRA data and a source familiar with the company.
It is unclear how many trades were failed to be reported. But as of December 31, the trading app’s users held about $802 million worth of shares purchased through its fractional share service.