The United States is thinking about changing how listed companies report their earnings. The Long-Term Stock Exchange (LTSE) plans to ask the Securities and Exchange Commission (SEC) to switch from quarterly earnings reports to semi-annual ones. This change aims to lower costs, reduce the workload from earnings calls, and allow company leaders to focus more on long-term strategies instead of short-term goals. This proposal addresses the challenges that public companies face due to their obligations. There has been interest in such changes for some time. Former President Trump considered it in 2018, and current SEC leaders are open to lessening regulatory demands. LTSE representatives have met with SEC officials and are optimistic about their response.

Impact On US Listed Companies

If approved, these changes would affect all U.S. listed companies and may help reverse the trend of declining public listings. The number of publicly traded U.S. firms has dropped from around 8,000 in 1997 to about 3,700 as of June. Many companies are choosing to remain private or to sell themselves. Although there has been a slight increase in initial public offerings recently, activity is still low compared to historical standards. Big private companies like SpaceX and Databricks are still looking for private funding. Founded in 2020, the LTSE based in San Francisco is committed to creating long-term value. Companies listed on the exchange must focus on sustained investments, engaging with stakeholders, and governance aligned with long-term goals. By pushing for changes like semi-annual reporting, LTSE believes that this could reduce the short-term pressure from the market and make public listings more appealing. As discussions around ending quarterly reporting continue, we should brace for a significant change in market volatility. Instead of regular, expected spikes in volatility during earnings seasons, we may see a longer period of uncertainty lasting six months. We should look out for unusual pricing in options contracts set to expire on traditional earnings dates, such as January and April 2026. The proposal is becoming popular as the number of U.S. listed companies has stayed low, just under 4,000 as of August 2025, while it was nearly 8,000 in 1997. This situation supports the idea that regulatory burdens greatly impact public listings. Hence, this change isn’t just a small adjustment; it could significantly alter how we receive information that affects our trading strategies.

Opportunity For Alternative Data Sources

For us, this means reassessing strategies that heavily depend on short-term earnings announcements. The profitable trading of weekly options to catch earnings day moves might happen less frequently. We should explore how options pricing will change with a semi-annual cycle, likely increasing premiums on longer-dated contracts. Although we heard similar discussions in 2018 that didn’t lead to changes, the current regulatory climate seems more supportive of the idea. A significant shift like this could stabilize the VIX index for extended periods, with larger price swings occurring just twice a year. Historically, fewer updates have led markets to react strongly to rumors and minor news events. In the near term, we should expect the market to be more sensitive to alternative data sources and updates between official reports. Sectors that rely heavily on data and are less dependent on earnings calls, like commodities, might be less impacted than tech stocks that rely on guidance. This information gap offers opportunities for those who can analyze non-traditional indicators to gauge market sentiment. Create your live VT Markets account and start trading now.

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