SEC may drop quarters
Quiver Quantitative flagged that the SEC is planning to eliminate quarterly reporting — a move that would strip a key, regularly timed input from many quant models and earnings‑based signals. That change would force researchers to redesign data pipelines and reweight backtests that rely on predictable earnings cadence. (x.com)
The Wall Street Journal reported the SEC is preparing a rule proposal that would let public companies file comprehensive results twice a year instead of mandating quarterly 10‑Q filings, and the proposal could be published as soon as next month. (money.usnews.com) President Donald Trump has publicly urged a shift to semiannual reporting and SEC Chair Paul Atkins has backed fast‑tracking a change, with Atkins saying the market should decide reporting “cadence.” (newsbreak.com) Regulators have held talks with major exchanges about needed rule adjustments, and the forthcoming proposal would enter a public comment period (typically at least 30 days) before the Commission votes. (securitiesdocket.com) The proposal would not remove all timely disclosure obligations because companies would still be required to file Form 8‑K for material events between periodic reports. (cfobridge.com) The move follows international precedents: the EU abandoned mandatory quarterly reporting in 2013 and the UK shifted away from compulsory quarterly filings in 2014, though many firms there still publish interim updates voluntarily. (corpgov.law.harvard.edu) Some sell‑side analysts have already assigned odds to the change—TD Cowen put the probability at roughly 60%—while industry players including Citadel and investor‑advocacy voices have publicly opposed loosening the quarterly mandate. (investing.com) Legal and valuation specialists say switching to semiannual reporting would force recalibration of models that assume a 90‑day cadence (for example, updating DCF/DDM cash‑flow timing and forecasting horizons) and would create mixed reporting cadences if some companies opt to keep quarterly filings. (ainvest.com)
