SEC's Semiannual Reporting Shift Could Trigger Short-Termism Reversal in U.S. Markets

The Securities and Exchange Commission is preparing a formal proposal that would fundamentally alter the rhythm of U.S. capital markets. The plan, which could be released as soon as next month, aims to make quarterly earnings reporting optional for public companies, shifting the default cadence to twice a year. This is not a minor adjustment to disclosure rules; it represents a structural shift that would end a 50-year-old mandate and realign U.S. standards with those of the European Union and the United Kingdom.

The proposal is being driven by a clear political and regulatory mandate. It follows direct calls from President Donald Trump, who has long advocated for the change, and is now a top priority for SEC Chairman Paul Atkins. The stated goal is to eliminate what regulators describe as unnecessary burdens on companies, with supporters arguing that the current quarterly cycle encourages excessive short-termism and adds significant clerical costs. The push gained formal momentum last year after the Long-Term Stock Exchange petitioned the SEC for a change, but the current effort marks a more definitive step toward a semiannual standard.

In institutionally, this change would require a lengthy and uncertain rulemaking process. Even if the proposal is issued, it must undergo a mandatory public comment period of at least 30 days before the SEC commissioners vote on whether to adopt it. The final rule would also necessitate adjustments to listing requirements across major stock exchanges, a process that could take years to implement. The plan would not abolish quarterly reporting entirely but would make it a voluntary choice, allowing companies to opt for a twice-yearly disclosure schedule.