FINRA Overhauls Guidance on Day Trading

FINRA published twenty new interpretations and modified or rescinded other margin requirements to implement the new intraday margin standards that take effect June 4, 2026. 

In a Regulatory Notice, FINRA said the changes include rescission of the pattern day trader minimum-equity interpretation and deletion of the day-trading interpretations rendered obsolete by the rule change.

The twenty new interpretations of Rule 4210 ("Margin Requirements") address

• the operation of the intraday margin framework, including acceptable methodologies for determining a margin account's intraday margin deficit ("IMD");
• the treatment of days without intraday margin liability ("IML") reducing transactions;
• the treatment of broker-dealer accounts;
• the treatment of bank sweep funds (which are not treated as credits except for purposes of determining IMD and IML);
• use of more recent prices or end-of-day prices to determine current market value;
• the timing of profit-and-loss recognition;
• closing positions to preempt an IMD;
• worked examples for net deposits, deposits of securities, market movements, combinations of deposits and market movements, and liquidation;
• capital charges under SEA Rule 15c3-1(c) ("Consolidated computations of net capital and aggregate indebtedness"); and
• the practice of failing to satisfy intraday margin deficits as promptly as possible.

Four existing interpretations were modified on withdrawals below $2,000 equity, minimum equity in portfolio margin accounts, and margin sub-accounts. Nineteen day-trading interpretations were deleted, including those addressing day-trading buying power, "time and tick" and aggregation, multiple day-trade calls, option spreads and combinations as day trades, the minimum equity requirement, and intra-day maintenance excess. Two interpretations address credit extended and credit committees.

FINRA also published investor educational materials including an Investor Insights article on the new margin requirements and an updated website page on Brokerage Accounts: Margin Accounts.