FINRA Eyes $2,000 Day-Trading Rule, Robinhood Stock Jumps 20%
FINRA is proposing to cut the pattern day trading equity requirement from $25,000 to $2,000, potentially unlocking new day traders and boosting Robinhood’s trading volume and fee revenue. Robinhood shares surged over 20% alongside other crypto-linked stocks as bitcoin briefly topped $78,000 in recent trading.
1. FINRA Proposes Lower Day-Trading Threshold
The Financial Industry Regulatory Authority is evaluating a rule to reduce the pattern day-trading equity requirement from $25,000 to $2,000, potentially opening day trading to millions more. Robinhood stands to benefit from increased trading volume and payment-for-order-flow revenue, though younger traders may face higher blow-up risks.
2. Crypto Rally Drives Robinhood Shares Higher
Bitcoin’s price climbed above $78,000 in a five-day recovery rally, driving crypto-linked stocks up at least 20%. Robinhood shares gained over 20% as investors favored its zero-commission crypto trading and fractional share offerings amid the risk-on market rebound.