FINRA’s intraday margin overhaul replaces ‘outdated’ requirements

FINRA has adopted new intraday margin standards, replacing what the regulator describes as outdated requirements. This includes the day trade count requirements for designating a customer as a “pattern day trader” and the $25,000 pattern day trader minimum equity requirement, FINRA said, in a regulatory notice on April 20.

In its notice, FINRA explained that the current rules that govern day trading in customer margin accounts were adopted nearly a quarter of a century ago.

FINRA emphasizes that the new intraday standards are designed to give customers more freedom to participate in the markets while at the same time requiring that customers maintain equity in their margin accounts that is commensurate with their level of market exposure at any point during the trading day.

"The new rule is designed so that members may implement real-time monitoring of customer positions and blocking transactions that would otherwise create or increase intraday margin deficits," it said.

The regulator further specifies that member firms that need more time to implement the amended Rule 4210 will be allowed to phase in the changes over an implementation period of up to 18 months following the June 4, 2026 effective date, ending on October 20, 2027, and notes that it plans to publish a separate notice “shortly” to provide interpretive guidance and additional resources to assist members with the transition.