The Financial Industry Regulatory Authority (FINRA) recently voted to overhaul the Pattern Day Trading (PDT) rule, which required a $25,000 minimum account balance to execute four or more same-day trades in five business days. The new rule, pending final approval by the SEC, would shift to a standard intraday margin framework.
This could unleash a retail trading boom, boosting volumes in volatile penny stocks and the platforms enabling them. While penny stocks may see action, brokerages and retail favorites are likely to be the more prominent beneficiaries of the end of the PDT rule.
