Retail investors have returned to speculative trading inApril, driven by a broader rally in risk assets and a regulatory change thatremoves a key barrier to active trading. According to CNBC, he shift has already triggered sharpprice movements in several stocks, highlighting renewed volatility across memetrades.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)SEC Rule Change Opens AccessThe U.S. Securities and Exchange Commission approved aproposal by FINRA to eliminate the pattern day trader rule. The rule previouslyrequired traders to maintain at least $25,000 in their accounts if theyexecuted four or more day trades within five business days.The new framework replaces that threshold with an intradaymargin system, allowing traders with smaller accounts to participate moreactively. FINRA said the rule had become outdated since its introduction afterthe dot-com crash.Continue reading: SEC Approves Plan to Remove $25K Day Trading Limit: How Will the New Risk-Taking Approach Impact Traders?Adam Cohn, Head of Trading Operations at TradeStation, told the publication that the update lowers barriers while maintaining safeguards. “This change opens thedoor for more investors with smaller accounts to trade more actively, whilestill keeping protections in place through modern margin and risk controls,” hesaid.Analysts at JPMorgan noted that the regulatory shift coulddrive further growth in retail trading volumes in the coming months.Sharp Moves Highlight RisksRetail traders have already moved into highly volatilestocks. Allbirds shares jumped from about $2.50 to $24 after the companyannounced plans to pivot toward artificial intelligence infrastructure under anew brand. The stock later dropped to around $8, reversing much of the gain.Avis Budget Group also recorded extreme price action. Thestock rose from below $100 to nearly $850 before falling sharply within thesame session.The US Securities and Exchange Commission (SEC) has approved a plan to eliminate the Pattern Day Trader (PDT) rule, which currently requires traders to maintain a minimum account balance of $25,000 to engage in frequent day trading. The rule, introduced by FINRA in 2001 after the dot-com crash, was designed to limit risk exposure for retail investors by restricting those with smaller accounts to no more than four day trades within five business days. Its removal marks a significant shift aimed at broadening access to day trading, particularly for smaller retail participants. In place of the PDT rule, regulators are introducing a new intraday margin framework that assesses risk in real time rather than by trade frequency. Under this system, traders will need to maintain sufficient equity based on their actual market exposure, shifting the focus from “how often you trade” to “how much risk you take.”This article was written by Jared Kirui at www.financemagnates.com.