US broker-dealer Wedbush Securities said on Wednesday it has already implemented the new intraday margin framework that replaced the Pattern Day Trader rule on June 4.
The SEC approved the amendments to FINRA Rule 4210 on April 14. The changes eliminate the ‘pattern day trader’ designation, the $25,000 minimum equity requirement, and the day-trade counting mechanism. In their place, firms must ensure customers maintain margin commensurate with their actual intraday exposure. The $2,000 minimum for leveraged trading remains.
Broker-dealers now calculate margin based on an account’s activity during the session rather than slotting traders into a fixed PDT category based on prior-day values. Firms can monitor in real time and block deficit-creating trades, or perform a single end-of-day calculation. FINRA is giving members up to 18 months to phase in the new standards.
“The modernization of the PDT rule reflects how markets and technology have evolved over the past 25 years. Wedbush has consistently invested in the infrastructure and expertise to stay ahead of that evolution,” said Rob Paset, Executive Vice President of Wedbush.
The Pasadena, Calif.-based firm said its technology and real-time risk management investments enabled a fast rollout, and pairs the new framework with 24/5 US equities and 24/7 futures access.
