SEC Approves Plan Removing Day-Trading Limit for Investors (1)

The US Securities and Exchange Commission gave the go-ahead for sweeping changes to a restriction on day-trading activity by small investors on Tuesday in a move cheered by retail brokers.

The Financial Industry Regulatory Authority, Wall Street’s self-regulatory watchdog, had proposed reworking the pattern day trading rule, which bans a trader from making more than four day-trades in a five-day period if their margin account has less than $25,000 in assets.

The new margin standards, which require customers to have enough equity in their account to cover the risks they run at that moment, will apply to all investors ...