SEC Operations During Government Shutdowns - The SEC is working to ensure the marketplace functions properly during government shutdowns, but operations are affected due to the Anti-Deficiency Act [2][3] - Exceptions can be made for enforcement matters, and guidance has been provided for IPOs that are ready to price [3][4] Quarterly Earnings Reporting - The SEC is considering changes to quarterly earnings reporting and will issue a proposal for public comment [4][8] - Academic studies suggest quarterly earnings may encourage short-term thinking [8] - Smaller companies may be allowed to switch to semiannual reporting to reduce the burden of frequent reporting [8][9] - Quarterly earnings are not the cornerstone of the disclosure process, as annual reports were the standard until 1955, and quarterly reporting only became common in 1970 [7] IPO Market and Litigation - The number of public companies has decreased by half in the last 30 years, and the IPO market has declined [9] - The SEC aims to encourage IPOs by addressing the litigation environment [9] - The SEC will accept IPOs from companies with bylaws allowing for mandatory arbitration [10] - The SEC is also considering accepting companies with fee-shifting provisions in their bylaws [10] Regulatory Reform - The SEC is planning a "spring cleaning" of regulatory requirements for disclosure to address information overload [11] - Streamlining disclosure laws and creating better safe harbors for corporate America could encourage more companies to go public [6]