SRO Monitor Digest

FINRA is eliminating the decades-old 'pattern day trader' rule — including the $25,000 minimum equity requirement and day-trading buying power limits — and replacing it with a modernized intraday margin standard that ties margin requirements to a customer's actual real-time market exposure at any point during the trading day. The SEC has fully approved this change (accelerated approval means it goes into effect faster than the standard 30-day waiting period after amendment), so this is not a pause or procedural step — the rule change is final and will be implemented. Members have 45 days from FINRA's Regulatory Notice before the new rules take effect, with an 18-month phase-in window for firms that need more time to update their systems.

NSCC (the central clearinghouse for U.S. equities) is proposing to extend its trade acceptance and clearing operations to a 24x5 model — running from Sunday 8pm to Friday 8pm — to support the broader industry push toward extended and overnight equity trading hours being pursued by NYSE Arca, Cboe EDGX, Nasdaq, 24X National Exchange, and various ATSs. This is a notice of filing, meaning the SEC is soliciting public comment before deciding whether to approve or disapprove the rule change; it does not take effect yet and the SEC has up to 90 days to act. If approved (targeted for June 28, 2026 implementation), brokers, exchanges, and ATSs would be able to have overnight trades centrally cleared and guaranteed by NSCC, removing a key operational barrier to widespread 24-hour U.S. equity trading.