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SEC Prepares Plan to Make Quarterly Earnings Optional

The agency elevated the effort at President Trump’s request to reduce compliance burdens.

Overview

  • The Wall Street Journal reports the SEC is drafting a rule to let public companies switch to semiannual disclosures, with a proposal possibly arriving in April.
  • Regulators have been consulting major exchanges, including NYSE and Nasdaq, on how listing requirements might change if firms move off the quarterly cadence.
  • If issued, the draft would enter the SEC’s rulemaking process with a public comment period of at least 30 days followed by a commission vote, so adoption remains uncertain.
  • The plan would not end quarterly updates outright, instead giving companies the option to keep reporting every three months or file twice a year.
  • Backers argue fewer filings would cut costs and short-term pressures, while investors warn of reduced transparency; the change could also shake the earnings-related ecosystem, even as many EU and UK firms still provide quarterly updates voluntarily.