Per the revised rules:
- A "pattern day trader" is defined as a customer who executes four or more day trades within five business days, provided the number of day trades is more than 6 percent of the total trades in the account during that period.
- The minimum equity requirement for pattern day traders is $25,000. The minimum for non-pattern day traders opening a margin account remains at the previous level of $2,000.
- For day trades in equity securities, day trading margin requirements are 25 percent of either the cost of all day trades made during the day or the highest open position during the day. Member firms are required to maintain appropriate "time and tick" records documenting the sequence in which each day trade is completed if the margin requirement is based on the highest open position during the day.
- Day trading buying power is calculated based on the customers account position as of the close of business on the previous day. Day trading buying power is limited to four times the day trader's maintenance margin excess, which is the equity in a customer's account at the close of business on the previous day less any maintenance margin requirement as prescribed in the Exchange's rules.
- Margin calls, which occur when a maintenance deficiency is caused by day traders exceeding the predetermined trading buying power, must be met within five business days. For pattern day traders, the trading account is restricted to day trading buying power of two times maintenance margin excess based on the customers daily total trading commitment beginning on the trading day following the day trading buying power is exceeded until the earlier of when the call is met or five business days. If the margin call is not met by the 5th business day, the account is restricted to trading on a cash basis only for 90 days or until the call is met.
- Pattern day traders are prohibited from utilizing cross guarantees to meet day trading margin calls or to meet minimum equity requirements.
- Deposits of funds to meet minimum equity requirements or to meet day trading margin calls must remain in the customer's account and cannot be withdrawn for two business days.
