Earlier in February FINRA filed with the SEC to reduce the time allotted to print a transaction that occurred to the tape from the current 30 seconds to 10. In an exchange environment dominated by low latency connections, high frequency trading and the persistent need for speed measured in microseconds, 10 seconds represents an eternity.
According to FINRA, only 94.41% of all trades are reported within 2 seconds today. Moreover, its stunning to consider that today’s rules allow for prints to occur a full 30 seconds after a trade occurs. Even with 99.96% of all trades reported within 10 seconds today, the rules have been slow to react.
Our current environment leaves most market participants with no certainty whether a particular trade reflects the immediate current market or at some point up to 30 seconds prior, and the tape does not distinguish when the trade actually occurred, which creates issues for upcoming programs, such as limit up/limit down. In an exchange environment dominated by trading, the print is an important and often overlooked component to an efficient market structure, and it is long overdue for change.
This important issue should not to be overlooked, and that is exactly why I’ve commented on the issue. Read my comments below in support of FINRA’s plan to move printing to no later than 10 seconds after the transaction.