FINRA Moves to Overhaul Day Trading Margin Provisions

Features

• FINRA Moves to Overhaul Day Trading Margin Provisions 
  FINRA has filed a proposed rule change with the SEC to replace the current day trading margin provisions with updated intraday margin standards. The rule change would eliminate the longstanding provisions for designating pattern day traders and the $25,000 minimum equity requirement while also reducing the risks of intraday trading exposures more broadly. This filing advances the FINRA Forward Rule Modernization initiative to update requirements, facilitate innovation, and reduce unnecessary burdens. The SEC will invite comment on the proposed rule change via its website when the proposal is published in the Federal Register. 
   
• FINRA CEO Addresses SEC Decision to Retire Global Research Analyst Settlement 
  Robert Cook, FINRA President and CEO, published a blog on Tuesday discussing the SEC’s recent consent to amendments that terminated the undertakings imposed by the 2002 Global Research Analyst Settlement (GRAS). Cook explains in the blog that the GRAS restrictions, which originally applied to 12 firms that published biased research during the dot-com era more than 20 years ago, were always intended as temporary measures until a comprehensive regulatory framework could be established for all firms. “Like most enforcement undertakings, the GRAS restrictions were never meant to last in perpetuity,” Cook writes. "[A]ctions by Congress, the SEC and FINRA have accomplished just that: creating a robust regulatory regime to safeguard the integrity of equity research that amply justifies retiring the GRAS.” Cook notes that this framework includes FINRA Rule 2241, the Sarbanes-Oxley Act, and the SEC’s Regulation Analyst Certification—protections that now apply to more than 250 firms that engage in some research activities. 
   
• FINRA Appoints Four New Board Governors 
  FINRA on Tuesday announced the appointment of four new Governors to its Board of Governors: Rostin “Russ” Behnam, Tim Carter, Dan Gallagher, and Heather Traeger. The new Governors bring extensive experience in financial services, regulation, industry leadership, and public pension management to the FINRA Board, which oversees the organization’s mission to protect investors and ensure market integrity. 
   
• Updated Policy for Requesting Annual Reports Extensions of Time 
  FINRA is phasing in a new Annual Reports Extension of Time Request Policy to update the information required from firms and their auditors when making extension requests. The updated policy will help streamline the extension process. For the filing of 2025 annual reports, firms may make their extension requests pursuant to the new policy or do so pursuant to the previous policy. Please see Regulatory Notice 25-19, published Dec. 29, 2025, for further information. 
   
• Final Renewal Statements Now Available 
  Final Statements are now available in E-Bill for broker-dealer and investment adviser firms participating in FINRA’s 2026 Annual Renewal Program. The Final Statements confirm or reconcile actual renewal fees owed as of Jan. 1, 2026, and reflect adjustments based on changes to registrations, reporting statuses, or notice filings made after Preliminary Statements were issued in November 2025. See Regulatory Notice 26-01, published Jan. 2, 2026, for guidance on reviewing, reconciling, and responding to Final Statements in E-Bill, as well as accessing renewal reports in the Central Registration Depository (CRD) and Investment Adviser Registration Depository (IARD) systems. 
   
• Updated FAQs on Electronic Distribution of Institutional Communications 
  In response to questions received in connection with the FINRA Forward Rule Modernization initiative, we have updated our Frequently Asked Questions to provide firms with additional guidance on the application of Rule 2210 (Communications with the Public) to the distribution of institutional communications. 
   
• Required Annual Review of Contact Information  
  Firms are required to complete an annual review of their contact information within the first 17 business days of each calendar year. This year, the deadline to complete the review in the FINRA Contact System (FCS) is Jan. 28. FCS can be accessed by logging into FINRA Gateway. As part of this review, firms should review all contacts and update as needed, per Rule 4517. 
   
• Proposed Change to CAT Reporting Rule Regarding Bona Fide Market Making Exception 
  FINRA amended Rule 6830 (Industry Member Data Reporting) to be consistent with the Consolidated Audit Trail (CAT) NMS Plan that requires broker-dealers with a reporting obligation to CAT to report whether an original receipt or origination of an order to sell an equity security is a short sale for which a market maker is claiming the bona fide market making exception in Rule 203(b)(2)(iii) of Regulation SHO. The rule change is already in effect. 
   
• FINRA Rules Incorporate New ‘Round Lot’ Definition for NMS Stocks 
  FINRA amended Rules 5220, 5320, 6220, 6272, 6279, 6320A, 6320B, and 7620A to conform to the new definition of “round lot” adopted by the SEC under Regulation NMS. These rule changes are already in effect. 
   
• Board Approves Major Rule Proposals, 2026 Budget 
  At its final meeting of 2025, FINRA’s Board of Governors approved three rule proposals concerning electronic delivery default, customer protection from financial exploitation, and collective trust fund flexibility. It also reviewed FINRA’s 2025 financial performance and approved FINRA’s 2026 budget. More information about FINRA’s finances will be provided in the annual financial report and budget summary. 
   
• New Podcast: Insights from the National Financial Capability Study 
  In the latest episode of the FINRA Unscripted podcast, FINRA Foundation President Gerri Walsh, the Foundation's Research Director Gary Mottola, and Senior Researcher Olivia Valdes discuss the wide-ranging findings and implications of the Foundation’s latest iteration of the National Financial Capability Study’s Investor Survey.