Retail brokerage Robinhood Financial did not report a certain type of stock trade it executed for customers last year to a public data feed, according to regulatory data analyzed by Reuters and a source familiar with the matter.

So-called fractional shares are offered by many brokerages. They let investors buy a slice of a share instead of the whole thing, so rather than forking out more than $3,000 on a share of Inc, an investor can buy as little as $1 worth.

Brokerages are required to report all their trades to trade execution facilities (TRFs), according to Financial Industry Regulatory Authority (FINRA) and U.S. Securities and Exchange Commission rules. FINRA’s enforcement has fined other brokerages, including Merrill Lynch and Deutsche Bank AG’s U.S. securities division, for violations of its reporting and supervisory rules in the past. Read More

By Ian Dei

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