The fact that this is optional means it will still happen, simply because of the signaling doing it quarterly will provide.
US SEC preparing to scrap quarterly reporting requirement
291–300 of 491 posts
Re: US SEC preparing to scrap quarterly reporting requirement
#292Earlier quoted context omitted.
But on what time scale? Before a few connected entities make a profit or after?
If you're not trading overnight and there's a flash crash that corrects itself overnight... it's the people who are trading overnight taking money from each other.
It’s easy to forget that “overnight” trading is the middle of someone’s day, somewhere. Generally Asia.
Re: US SEC preparing to scrap quarterly reporting requirement
#293Earlier quoted context omitted.
Milliseconds? Any overnight mispricing is going to become an arbitrage opportunity for market makers, hedge funds, and HFT firms...whom will then compete with each other to mine that arbitrage opportunity until profits go to zero, solving the market inefficiency and mispricing problem over time (and by over time, I mean like probably the first few nights and then it stops being an issue forever). In other words, a li…
Extracting value from the market as they do it and leaving everyone operating at normal time/capital scales with less. Or isn’t that what you meant?
Yes, when you correct a mispricing in markets that is a valuable service and you tend to get paid in proportion to the mispricing you correct (this is why markets work so well, they provide dynamic incentives in a decentralized way).
In case you aren't aware, a world outside the US exists on different time zones and also invests in US capital markets.
Having 24/7 trading a massive value-add for the entire world who also invests in US companies, which benefits US companies tremendously given they will continue sucking up the world's capital.
This is yet another reason why global companies will continue going public in US markets instead of their own. Meanwhile Europe will continue struggling to form a capital markets union over the next 50 years while they slowly translate legal documents back and forth to each other in 42 languages, growing the fine dining economy of Brussels more than their domestic economies.
Re: US SEC preparing to scrap quarterly reporting requirement
#294Earlier quoted context omitted.
Well we’d go back to an era where private capital owns the world. The public would not be able to participate or benefit from the ownership of companies and share in the prosperity.
Private capital doesn't own the U.S.?
BREAKING: Countries other than "U.S." found to be members of so-called "world"
Although I'm not sure what he's on either. Capitalists definitely own and exploit pretty much the entire world, with few exceptions.
Re: US SEC preparing to scrap quarterly reporting requirement
#295Earlier quoted context omitted.
I assume you mean that employees had daily goals? This is both not unusual and unrelated to investor reporting requirements.
No, I mean I as a relatively junior employee literally got a daily email with nationwide same store sales (dollar amounts , aggregated region, and corporate, franchise, etc) vs prior day, week, month, year and if it was ever down on even day 1 or 2 of a promo like “LTO spicy chicken funbox” or whatever you can guarantee the CEO would be calling and trying to upend and reverse the 3+ months of work you put into that p…
That sounds more like a CEO issue than a reporting frequency issue.
Re: US SEC preparing to scrap quarterly reporting requirement
#29624/7 trading sounds like a nightmare. “Your retirement savings crashed 30% because there wasn’t enough liquidity to cover a 3am panic over non-news”.
Honestly, stocks should trade for three hours a day. 24/7 trading sounds like a win for exchange operators and a loss for anyone else.
And even that seems kind of generous to me. I see absolutely zero value in stock trading continuously for any length of time. Businesses don't make purchasing or investment decisions in that time span, nothing of significant value can even be created or sold or shipped in those time spans.
Re: US SEC preparing to scrap quarterly reporting requirement
#297Re: US SEC preparing to scrap quarterly reporting requirement
#298Earlier quoted context omitted.
Honestly what would happen if the stock market didn't exist. It seems like these days the price of stock is so disconnected from lived reality that genuinely confused if it would be all that catastrophic
Well we’d go back to an era where private capital owns the world. The public would not be able to participate or benefit from the ownership of companies and share in the prosperity.
I mean the average person already barely has any participation at all, and certainly doesn't benefit from it when their money gets dumped down the toilet because of some widespread financial scams and grifts that repeatedly happen over and over again.
Re: US SEC preparing to scrap quarterly reporting requirement
#299Earlier quoted context omitted.
Listing on a public exchange is not a requirement, but it is generally a boon to the public interest. The theory is that if we close the gap in regulatory burden between public companies and large private companies, then maybe we'll see more IPOs like back in the 90's, before Sarbanes-Oxley and other new laws. Now, with an admin that's disposed to deregulation, the usual approach to closing that gap is to loosen requ…
FWIW even if we weren't in this admin, I think it would be a harder sell to increase reporting requirements on private companies. The whole point of private capital and private companies is that LPs (edit: liquidity providers) are required to have some form of accreditation to prove that they aren't dumb money and that they have the capital to weather large drawdowns. The problem of growing private capital markets an…
Yeah. It's not obvious how to do it. I just wish that policy people would do some thinking in this direction.
(Nit: I believe that in venture contexts, LP = "limited partners". A "liquidity provider" usually means the same thing as a market maker, at which point you're talking about the secondary / listed / public markets.)
Re: US SEC preparing to scrap quarterly reporting requirement
#30024/7 trading sounds like a nightmare. “Your retirement savings crashed 30% because there wasn’t enough liquidity to cover a 3am panic over non-news”.
The beauty of it, though, is that it would recover almost immediately as systems arbitrage an obviously stupid situation.
I'm extremely skeptical about this.
24/7 trading will definitely burn a lot of extra energy in datacenters, make some speculators a little richer, and make a LOT of retail investors nervous…
But what actual real-world problem will it solve?
I for one am skeptical that more liquidity is always good. I think that having achieved $0.01 spreads, we're well-past the point of diminishing returns with high-frequency trading.