The Long-Term Stock Exchange (LTSE) plans to petition the Securities and Exchange Commission to scrap quarterly earnings reports and instead let companies report twice a year, according to the Wall Street Journal (gated). LTSE argues the change would cut costs, reduce the administrative burden of earnings calls, and allow executives to focus on long-term strategy rather than short-term targets.
CEO Bill Harts said the proposal reflects growing complaints about the burden of being public. The idea has precedent, with former President Trump exploring it in 2018 and current SEC leaders showing interest in reducing regulation. LTSE representatives recently met with SEC officials and left optimistic about the reception.
The change would apply to all U.S. listed companies, not just those on LTSE, and could help reverse the long-term decline in public listings. The number of publicly traded U.S. firms has halved since its 1997 peak, dropping to around 3,700 as of June, with many firms staying private or selling rather than taking on the costs of listing. While IPOs have picked up recently, activity remains sluggish compared to historical levels, with large private firms like SpaceX and Databricks still relying on private capital.
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The Long-Term Stock Exchange (LTSE), launched in 2020 and headquartered in San Francisco, is a U.S. equities marketplace built around principles of long-term value creation. Unlike traditional exchanges, it requires listed companies to commit to policies that prioritize sustained investment, stakeholder engagement, and governance aligned with long-term goals. While only a handful of firms are listed so far, LTSE has positioned itself as a reform-minded venue advocating structural changes — such as shifting to semi-annual reporting — that it argues will reduce short-term market pressures and revive the appeal of public listings.
