The SEC’s Division of Corporation Finance held a roundtable with investors, issuers, and other market participants about the impact of short-termism on capital markets. Moderated by Division staff, the two panels focused on the impact of short-termism on our capital markets and whether the SEC’s reporting system, or other aspects of its regulations, should be modified to address these concerns.
“We need to consider these issues from two points of view. One is to look at the macro forces that drive short-term behavior in our markets generally and explore market-based initiatives to address them,” said Chairman Jay Clayton. “The other is to look at our disclosure framework and other regulations as a package, not as individual items, to determine whether they efficiently allow companies to focus on the long-term performance.”
The first panel explored broadly the causes and impact of a short-term focus on capital markets
Bill Hinman, Director of the Division of Corporation Finance, gives opening remarks at the roundtable held at the SEC’s Washington, D.C. headquarters.
Chairman Jay Clayton participates in the roundtable on short- and long-term management of public companies.
The second panel focused on the periodic reporting system and what regulatory changes could be implemented to foster a longer-term focus.
The first panel explored broadly the causes and impact of a short-term focus on capital markets, and discussed potential market practices and regulatory changes that could encourage long-term thinking and investment. The second panel focused on the periodic reporting system and what regulatory changes could be implemented to foster a longer-term focus.
Members of the public who wish to provide views may submit comments electronically or on paper.
Electronic Comments:
Use the SEC’s Internet submission form or send an email to rule-comments@sec.gov.
Paper Comments:
Send paper comments to Vanessa A. Countryman, Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, D.C. 20549-1090.
All submissions should refer to File Number S7-26-18, and the file number should be included on the subject line if email is used.