FINRA Approves Amendments to Pattern Day Trading Rules

FINRA’s Board of Governors approved amendments to replace "the minimum equity of $25,000 for pattern day traders, with an intraday margin rule that applies the existing maintenance margin rules to intraday exposure."

The amendments reflect feedback FINRA received from member firms, industry groups, and investors from a retrospective review which asked whether technological advances, enhanced monitoring, and market shifts—such as zero commissions and tighter spreads—have changed the risks these rules were meant to address, and whether alternative protections or comparable regulation for similar strategies may be appropriate.

FINRA stated that the proposal will be filed with the Securities and Exchange Commission for review and approval.