Jul 21, 08:56 PM

FINRA Plans to Cut Day-Trading Threshold to $2,000

The Financial Industry Regulatory Authority is drafting a proposal that would overhaul the United States’ two-decade-old “pattern day trading” rule, people familiar with the matter said. The plan would lower the minimum equity investors must hold in a margin account to make more than three day trades in five business days to about $2,000, far below the current $25,000 requirement. If adopted, the change would effectively lift the main barrier that restricts retail investors with modest balances from borrowing to trade equities and options actively. Broker-dealers would be able to set their own margin requirements for frequent traders, replacing the uniform federal threshold that has been in place since 2001.

#Financial Industry Regulatory Authority #United States

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