Key Takeaways
- • Two Sigma Investments and D.E. Shaw have joined a coordinated Wall Street opposition to an SEC proposal that would make quarterly corporate earnings reporting optional for public companies.
- • Industry participants, including Citadel and Fidelity, have raised concerns that eliminating mandatory quarterly disclosures would increase market volatility, widen stock price fluctuations, and raise the cost of capital for listed companies.
- • Investment firms are engaging through industry groups such as the Managed Funds Association (MFA) to coordinate feedback, though no formal lobbying campaign has been formally launched at this stage.
- • Market participants argue that frequent mandatory disclosures help anchor market valuations, improve price discovery, and ensure a steady flow of financial information to market participants, reducing information asymmetry.
- • The SEC, under Chair Paul Atkins, is in early stages of advancing the proposal toward public comment; industry efforts are currently focused on either significantly scaling back or halting the initiative entirely.
Summary
Two Sigma Investments and D.E. Shaw, among the largest hedge funds and alternative asset managers on Wall Street, have joined a growing industry coalition opposing a Securities and Exchange Commission proposal to make quarterly corporate earnings reporting optional. According to Reuters sources and industry reports from April 15, 2026, the investment firms are concerned that reducing the frequency of mandatory financial disclosures would weaken transparency in public markets and reduce the steady flow of financial information available to institutional investors and other market participants.
The opposition effort includes other major asset managers and hedge funds such as Citadel and Fidelity, which have raised objections during private discussions and formal SEC proceedings. At a recent SEC investor advisory committee meeting in March attended by SEC Chair Paul Atkins, participants warned that moving away from quarterly reporting could trigger increased market volatility, wider stock price fluctuations, and higher capital costs for publicly listed companies. Industry participants emphasized that frequent mandatory disclosures serve a critical function in anchoring market valuations and improving price discovery—fundamental mechanisms that reduce information asymmetry and support efficient market functioning.
Investment firms have coordinated their feedback informally through industry groups including the Managed Funds Association (MFA), though no fully organized formal lobbying campaign has been formally established. Bloomberg sources indicate that market participants are seeking either to significantly scale back the SEC proposal or halt it entirely. However, the regulatory process remains in its early phases, with the SEC preparing to formally advance the proposal and open it for public comment, suggesting the outcome remains uncertain.
The proposal represents a significant potential shift in U.S. capital markets regulation, with implications for information flows, investor decision-making, and market stability. The coordinated pushback from major institutional investors suggests that the financial services industry views mandatory quarterly reporting as essential infrastructure for efficient market operations rather than a regulatory burden that can be safely removed.
The opposition effort includes other major asset managers and hedge funds such as Citadel and Fidelity, which have raised objections during private discussions and formal SEC proceedings. At a recent SEC investor advisory committee meeting in March attended by SEC Chair Paul Atkins, participants warned that moving away from quarterly reporting could trigger increased market volatility, wider stock price fluctuations, and higher capital costs for publicly listed companies. Industry participants emphasized that frequent mandatory disclosures serve a critical function in anchoring market valuations and improving price discovery—fundamental mechanisms that reduce information asymmetry and support efficient market functioning.
Investment firms have coordinated their feedback informally through industry groups including the Managed Funds Association (MFA), though no fully organized formal lobbying campaign has been formally established. Bloomberg sources indicate that market participants are seeking either to significantly scale back the SEC proposal or halt it entirely. However, the regulatory process remains in its early phases, with the SEC preparing to formally advance the proposal and open it for public comment, suggesting the outcome remains uncertain.
The proposal represents a significant potential shift in U.S. capital markets regulation, with implications for information flows, investor decision-making, and market stability. The coordinated pushback from major institutional investors suggests that the financial services industry views mandatory quarterly reporting as essential infrastructure for efficient market operations rather than a regulatory burden that can be safely removed.
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