May 18, 2026
The SEC's proposed plan to provide public companies the option to NOT file quarterly reports, and instead to file only semi-annual reports, is a terrible idea. Public investors absolutely need the information published quarterly in order to make informed investment decisions. Visibility 4 times a year allows for necessary price / value adjustments and is highly efficient. The time commitment of quarterly reporting for public companies is minimal, when compared to the vast benefits companies gain when they can access the world's leading public markets in the US. Most importantly, investors in US markets deeply depend on quarterly financial reporting, which is one of the main reasons our markets are far and away the largest, most liquid and most attractive in the world. If the US converts to semi-annual reporting, expect to see US markets become weaker, smaller and less liquid like those that report semi-annually. Look at European markets for the results that will follow if the SEC converts to this proposed rule change. Finally, keep in mind that financial markets are a competitive business. Other lower tier markets (London, Hong Kong, etc.) will certainly gain and become more attractive alternatives if the US moves to semi-annual reporting. If the concern is that US markets need more of our private companies graduating to public companies (something I agree with), then focus on promoting other incentives and benefits for these private companies -- not on reduced financial reporting. No one seriously believes that the litany of private tech (and other) companies are choosing to stay private longer b/c they don't want to report quarterly. Please don't adopt this ill-informed rule change. Sincerely, Kevin W. Alexander