The US Securities and Exchange Commission (SEC) has granted accelerated approval to FINRA's proposed rule change, which eliminates the Pattern Day Trader designation and the $25,000 minimum equity requirement under FINRA Rule 4210. This significant regulatory shift also removes all related day-trading buying power provisions.
In place of the previous requirements, the SEC has approved new intraday margin standards. These standards mandate that broker-dealers actively monitor and manage real-time risk exposure in customer margin accounts, aiming to enhance market stability and investor protection.
SEC Approves FINRA Rule Change, Eliminates Pattern Day Trader Designation
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