Webull Shares Jump Over 9% After SEC Scraps $25K Day-Trading Rule
Webull shares surged over 9% after the SEC approved an overhaul of the pattern day-trading rule, eliminating the $25,000 minimum equity requirement for frequent traders. The new framework replaces the threshold with real-time risk coverage, potentially expanding Webull’s active trader base and boosting trading revenue.
1. Regulatory Approval and Rule Changes
The SEC approved an overhaul of the pattern day-trading rule, removing the $25,000 minimum equity requirement for executing more than four day trades within five business days. Under the new framework, all customers must maintain sufficient equity to cover the real-time risk of their positions, regardless of account size.
2. Impact on Webull’s Business
Webull shares jumped over 9% as the brokerage stands to attract traders previously barred by the threshold, potentially driving higher account activity and commission revenue. Company executives have enhanced trading tools, transparency measures and risk management systems in anticipation of increased transaction volumes.
3. Competitor and Market Response
Rival brokers also saw share gains, with Robinhood up 5.7% on the day. Industry leaders view the rule change as aligning regulation with modern trading practices, likely encouraging broader retail participation and intensifying competition among platforms.