SEC’s Plan to Scrap Quarterly Earnings: Will Less Transparency Fuel More Volatility?

There are days when the market feels like a casino, and then there are days when the casino’s house rules get rewritten mid-game. Today, the Securities and Exchange Commission is teeing up a proposal to end mandatory quarterly earnings reporting. If you’re a trader who thrives on the adrenaline of earnings season, you might want to sit down for this one. The SEC, with a nudge from the White House, is about to toss one of Wall Street’s sacred cows on the grill, and the sizzle is already audible.

Let’s not sugarcoat it: quarterly earnings are the heartbeat of modern equity trading. They’re the drumbeat that keeps analysts, quants, and momentum algos in sync. Every three months, corporate America lines up for its ritual confession, and the market judges, rewards, or punishes in real time. Now, the SEC is considering letting companies decide when to open the kimono. The stated rationale is to encourage long-term thinking and reduce the short-termism that supposedly plagues US markets. But if you believe that, I have a bridge in Brooklyn to sell you. The real story is about information asymmetry, volatility, and who gets to play with the best cards.

The news broke late in the New York session, with pymnts.com and the New York Post both confirming that the SEC is preparing to propose the end of mandatory quarterly reporting. The White House, never shy about market spectacle, is reportedly supportive. The market’s immediate reaction? Shrug. The major indices finished flat, with the Tech Select Sector ETF ($XLK) closing unchanged at $138.80. The broad commodities ETF ($DBC) also went nowhere, stuck at $28.35. But don’t mistake apathy for irrelevance. This is the kind of regulatory move that doesn’t hit the tape in a single session. It seeps into the plumbing, rewiring incentives and reshaping volatility in ways that only become obvious when the next earnings season fails to materialize.

If you’re looking for historical precedent, you’ll have to squint. The US has required quarterly reporting since the 1930s. Europe, for its part, ditched the requirement in 2014, arguing it would foster longer-term investment. The result? A modest decline in short-term trading volume, some evidence of wider bid-ask spreads, and a lot of hand-wringing about information gaps. But the US is not Europe. The American market is a different beast, bigger, faster, and more addicted to the dopamine hit of earnings surprises. The SEC’s move, if enacted, would be the biggest shakeup in US corporate disclosure in nearly a century.

The macro backdrop is, if anything, tailor-made for a transparency debate. The world is on edge. The Middle East is on fire, oil supply chains are fraying, and the US economy is barreling toward a high-stakes election. The S&P 500 is sitting near all-time highs, buoyed by AI hype and a Teflon-like resilience to geopolitical shocks. Yet under the surface, analysts are quietly raising earnings forecasts, according to Ed Yardeni (MarketWatch, 2026-03-16). The market is pricing in a soft landing, but the data is noisy. In this environment, less frequent earnings updates could mean more guesswork, more volatility, and more room for creative accounting.

Let’s be blunt: the end of quarterly reporting is a gift to insiders. When companies control the timing and content of their disclosures, the playing field tilts. Analysts and institutional investors will adapt, of course. They’ll lean harder on alternative data, channel checks, and management guidance. But for the rest of the market, the fog of war thickens. Volatility spikes not because the fundamentals have changed, but because the information flow has slowed to a trickle. The algos, starved of fresh data, start chasing shadows. Bid-ask spreads widen, and the cost of capital creeps up. The SEC says it wants to encourage long-termism. What it may get is a market that’s more opaque, more volatile, and more prone to sudden air pockets.

Strykr Watch

Technically, the market is in a holding pattern. $XLK is stuck at $138.80, with resistance looming at $140.00 and support at $137.00. The RSI is neutral, hovering just above 50, and the 50-day moving average is flatlining. $DBC is equally uninspiring, locked in a narrow range between $28.30 and $28.40. Volatility, as measured by the VIX, is subdued, but don’t let that lull you into complacency. If the SEC moves forward with its proposal, expect a regime shift in realized volatility. The next earnings season, or lack thereof, will be the real test. Watch for sudden spikes in single-stock volatility, especially among mid-cap names with less sell-side coverage. The algos are already recalibrating their models, and the first company to skip a quarterly update will be the canary in the coal mine.

The bear case is straightforward: less frequent reporting means more surprises, more uncertainty, and a higher risk premium. If companies start gaming the new rules, timing disclosures to coincide with favorable macro data or burying bad news in off-cycle updates, the market will punish them. The SEC’s proposal could also backfire politically, especially if retail investors feel they’re being left in the dark. The bull case is more nuanced. In theory, less short-term pressure could lead to better capital allocation and higher long-term returns. But that’s a leap of faith. In practice, the market hates uncertainty, and traders will demand a higher risk premium to compensate.

For active traders, the opportunity is in volatility. If the SEC’s proposal gains traction, expect a spike in realized volatility around earnings season, or what’s left of it. Single-stock dispersion will increase, creating more opportunities for long-short strategies. Options premiums will rise, especially for names with spotty disclosure histories. If you’re nimble, this is a playground. If you’re slow, this is a minefield. The key is to stay flexible and watch for regime shifts in information flow. The first wave of companies to opt out of quarterly reporting will set the tone. Track their price action, monitor bid-ask spreads, and don’t be afraid to fade the first move. The market will overreact, as it always does.

Strykr Take

The SEC’s proposal to end mandatory quarterly reporting is a slow-motion earthquake for US markets. The surface may look calm, but the tectonic plates are shifting. Traders who thrive on volatility should be licking their chops. The era of predictable earnings seasons is ending. The new regime will reward speed, skepticism, and a healthy disregard for management spin. Stay sharp, stay cynical, and remember: in the land of the blind, the one-eyed trader is king.