PTG Responds to SEC Semiannual Reporting Proposal
Jul 6, 2026
In a letter filed today with the Securities and Exchange Commission (SEC), PTG opposes the proposal to permit optional semiannual reporting by public companies. PTG supports efforts to reduce unnecessary public-company burdens, but contends that reducing the frequency of mandatory, auditor-reviewed disclosures would weaken the transparency, consistency, comparability, and accountability that support U.S. market quality and investor confidence.
The letter emphasizes that quarterly Form 10-Q reporting promotes market discipline by requiring companies to provide standardized, comprehensive, and independently reviewed financial information. Moving toward voluntary or less frequent disclosure would increase information asymmetries, impair price discovery, widen bid-ask spreads, reduce market depth, and raise transaction costs—effects likely to be most pronounced for smaller and less-liquid issuers.
PTG also warns that longer reporting intervals would create market-integrity risks by allowing more nonpublic information to accumulate inside companies and increasing opportunities for selective disclosure, manipulation, and fraud. Because those risks could increase issuers’ cost of capital and outweigh any compliance-cost savings, PTG urges the SEC to reject the Proposal and instead pursue targeted disclosure reforms—such as materiality-focused Regulation S-K updates, EDGAR modernization, and structured-data improvements—that reduce burdens while preserving quarterly reporting.