Wall Street push against US SEC's quarterly reporting proposal

What happened: The Securities and Exchange Commission (SEC) proposed on May 5 to allow U.S. public companies to opt out of quarterly earnings reports, switching to a twice-a-year disclosure regime. President Donald Trump had previously advocated for this change. Wall Street firms like Two Sigma Investments and D.E. Shaw are pushing back against the proposal, expressing concerns it could reduce transparency.

Market impact: The proposal could significantly impact investor relations and valuation for companies opting out of quarterly reports. Sam Rines, macro strategist at WisdomTree Asset Management, warned that such companies may face investor backlash and potential sell-offs. Prediction markets traders are confident the SEC will approve the change, with a 70% probability by late May.

What to watch next: The SEC's final decision on the rule change, expected later this year, will be a key catalyst. Additionally, companies' earnings calls and guidance in the coming quarters may provide insights into their stance on the proposed change. Lastly, the SEC's next meeting on May 26 could offer further clarity on the timeline and potential modifications to the proposal.