07.21.25

Day-Trading Restraints To Be Loosened Under Proposed Rule Change

by: Rohslaum Jayna; Katherine Doherty

The Financial Industry Regulatory Authority (FINRA) is considering a reduction in a threshold for retail investors to engage in day-trading. Currently investors with less than $25,000 in their margin account cannot borrow to trade four or more times in a five-day period. A new proposal would lower the threshold to $2,000. The existing rule, adopted in 2001, was put in place to protect investors, but critics complained that it limits those with smaller accounts. FINRA requested comments on a potential rule change in October of last year.

Read the full article on Bloomberg