SEC’s Plan to End Quarterly Earnings: Will Markets Get More Volatile or Just More Boring?

If you want to know how to make Wall Street collectively spit out its coffee, just whisper 'no more quarterly earnings.' The Securities and Exchange Commission is reportedly preparing a proposal to scrap mandatory quarterly reporting for public companies, a move that has corporate boards salivating and traders somewhere between bemused and horrified. The news, breaking late on March 16, 2026, is the kind of regulatory curveball that doesn’t just tweak the rules, it threatens to upend the entire rhythm of modern equity markets.

Let’s not sugarcoat it: quarterly earnings are the heartbeat of the trading calendar. They’re the reason your Bloomberg terminal lights up with fireworks every January, April, July, and October. They’re also the source of endless volatility, as companies try to lowball guidance, beat by a penny, and watch their stock pop or drop 12% in after-hours trading. The SEC’s plan, which has been quietly circulating for months but now looks ready for prime time, would replace this ritual with a more 'flexible' approach to disclosure, think semi-annual or even event-driven updates. The stated goal is to reduce short-termism and let management focus on building real businesses instead of gaming the next quarter. The real-world effect? That’s where things get spicy.

The market’s initial reaction has been a collective shrug, at least judging by the flatline in major ETFs like $XLK at $138.8. But beneath the surface, the implications are profound. If you’re a trader who lives for earnings season, this is like the NBA canceling the playoffs. No more earnings beats to scalp, no more guidance cuts to fade, no more algorithmic feeding frenzies at 4:01 p.m. Instead, the market could drift into a kind of information vacuum, punctuated by the occasional 'event', a merger, a scandal, or a surprise profit warning. Volatility might not disappear, but it could become more random, less predictable, and, frankly, a lot less fun for anyone who makes a living on the quarterly cadence.

Historically, quarterly reporting has been both a blessing and a curse. It keeps management honest, but it also incentivizes all manner of financial engineering. The SEC’s move is backed by some big names, including a certain former president who once called quarterly reporting 'crazy.' The argument is that less frequent reporting will allow companies to invest for the long term, free from the tyranny of the next quarter’s EPS target. But let’s be real: markets crave information. Take it away, and you don’t get more rational behavior, you get more speculation, more rumor-mongering, and more volatility around the few data points that remain.

This isn’t just a US story. European and UK regulators have already loosened their own reporting requirements, with mixed results. Some companies love it, but investors complain about a lack of transparency and bigger price swings when news finally drops. If the SEC goes through with this, expect US markets to look a lot more like their European cousins, less predictable, less liquid around events, and more prone to sharp, sudden moves when information finally surfaces. For active managers and prop traders, this is both a threat and an opportunity. The old playbook, model the quarter, trade the print, goes out the window. The new game is about reading between the lines, tracking alternative data, and being ready to pounce when the news finally breaks.

Strykr Watch

With $XLK holding steady at $138.8, the market is in a holding pattern, but don’t let the calm fool you. The real action will come when the SEC’s proposal hits the comment period. Watch for volatility to spike around major corporate events, mergers, profit warnings, activist campaigns, since these will become the new 'earnings season.' Technical levels to monitor: $XLK support at $137.5, resistance at $141. RSI is neutral, but implied volatility in single-stock options is already creeping higher as traders brace for a world with fewer scheduled catalysts. If you’re trading earnings volatility, start thinking about how to adapt your strategy. The days of the predictable 'earnings crush' may be numbered.

The risks here are obvious. If the SEC’s plan goes through, the market could see a sharp drop in liquidity around traditional earnings windows, with volatility migrating to unscheduled events. That means wider spreads, more slippage, and a higher risk of getting blindsided by news. There’s also the risk that less frequent reporting leads to more corporate shenanigans, think Enron, but with fewer opportunities to catch the red flags. On the flip side, companies could use the extra breathing room to invest in real growth, leading to stronger fundamentals over time. But don’t count on it. Old habits die hard, and Wall Street’s appetite for short-term action is insatiable.

For opportunistic traders, this is a chance to get ahead of the curve. Start building alternative data pipelines, track insider transactions, and pay attention to sector-specific catalysts. If earnings season goes away, the new alpha will be in spotting the unscheduled moves. Consider selling volatility around traditional earnings windows and buying it around major corporate events. For longer-term investors, this could be a time to focus on fundamentals and tune out the noise. But for everyone else, get ready for a market that’s less predictable, more chaotic, and, if you play it right, potentially more profitable.

Strykr Take

The SEC’s plan to end quarterly reporting is either the best thing to happen to markets in a decade or the beginning of a new era of chaos. My money’s on chaos. The old playbook is dead. The winners will be the traders who adapt fastest to a world where information is scarce and volatility is king. Don’t get caught flat-footed. This is one regulatory shift you can’t afford to ignore.