FINRA Board Approves Key Amendments to Day Trading Rules and Regulatory Updates

During the September 2025 Board of Governors meeting, the Financial Industry Regulatory Authority (FINRA) approved several amendments to its Pattern Day Trading rules as part of its ongoing FINRA Forward initiative. These amendments aim to enhance capital formation while ensuring robust investor protections. Specifically, the approved proposals include revisions to corporate financing rules and updates to outside activities requirements, which will soon be filed with the Securities and Exchange Commission (SEC).

Additionally, the Board discussed a forthcoming Regulatory Notice that aims to streamline the process for the bulk transfer or assignment of customer accounts by reducing unnecessary burdens and consolidating previous guidance on the use of negative consent. Compliance professionals should closely monitor these developments, as they will necessitate adjustments in operational procedures and client communications.

The meeting also highlighted updates to FINRA's cybersecurity program and developments regarding the Consolidated Audit Trail, emphasizing the importance of maintaining robust cybersecurity measures in light of evolving regulatory expectations. Stakeholders are encouraged to stay informed about these changes to ensure compliance and mitigate potential risks.