FINRA Retires the PDT Rule: Introducing Alpaca's New Intraday Margin Framework

FINRA has approved amendments to Rule 4210, effective June 4, 2026, which replace the current Pattern Day Trader (PDT) provisions with a new intraday margin framework focused on real-time risk management rather than fixed trade limits and equity requirements. This change allows for dynamic monitoring of intraday trading exposure, replacing the $25,000 minimum equity requirement with a $2,000 threshold for increased buying power in leverage-enabled accounts. The new rules introduce Intraday Buying Power and Margin Calls to handle positions exceeding available margin, with a penalty of account restriction for repeated failures to meet margin calls within a five-day period. Alpaca will implement these changes for its Trading API users and Broker API partners, requiring updates to API integrations by July 6, 2026. The transition eliminates PDT designations and associated restrictions, allowing previously ineligible accounts to participate in Alpaca’s High-Yield Cash program.