It can go quickly to abolish the requirement for quarterly reports on the Stockholm Stock Exchange's main list, according to Sverre Linton.
If the USA – and possibly London – ease the requirements, I think we will see a movement towards easing the requirements here as well, he says.
Goes further than the laws
A factor that paves the way for rapid changes is that the stock exchange's requirements for quarterly reports go further than Swedish law and EU directives. There, only annual reports and half-year reports are required. In addition, the EU Commission's stated goal is to simplify the rules.
A smaller reporting burden could also be seen as a way to increase the attractiveness of the Stockholm Stock Exchange when unlisted companies on their way to being listed have to choose which exchange to go to, according to Linton:
Nasdaq Stockholm probably feels that they have lost a few prestige listings now, in the form of Klarna and Spotify. They are probably willing to make a lot of effort not to lose more.
However, he thinks that frequent reporting is an important protection for investors.
I think it's good that the stock exchange dares to set higher requirements and go further than the laws, he says.
Many listed companies see the quarterly report as an opportunity to reach more customers and investors.
I think it's positive if you can talk more about the long-term development than the very short-term. If it had helped with six months instead of three months, I have a hard time assessing, says H&M's CEO Daniel Ervér when TT raises the issue with him.
Increased uncertainty, more volatile stock market
There may be risks that the flow of information will decrease if quarterly reports are abolished, according to Nasdaq Stockholm. This can lead to increased uncertainty and, in the long run, more volatile stock prices. It can also increase the risk of insider trading and speculation and push up capital costs, writes the stock exchange's press contact Erik Gruvfors in an email to TT.
An argument for abolishing the requirement is that it would reduce the administrative burden for smaller companies.
”At the same time, a majority of market players have wished to maintain the requirement to ensure the market's transparency and efficiency”, writes Gruvfors.
The regulatory framework that governs is updated annually and it is normally the stock exchange itself that both takes the initiative to change the rules and is the final decision-making body. Consultation is included in the process, with actors such as the Confederation of Swedish Enterprise, the Financial Supervisory Authority, listed companies, and investors.
Joakim Goksör/TT
Tobias Österberg/TT
Fact: Trump wants to get rid of quarterly reports
TT
US President Donald Trump wants to abolish the requirement for quarterly reports from listed companies on Wall Street. Trump announced the proposal on the social network X on Monday, September 15.
The head of the US financial authority SEC, Paul Atkins – recently appointed by Trump – said shortly afterwards in an interview with the TV channel CNBC that he basically supports the proposal.
To get the rule change through, a formal proposal must be submitted by the SEC, which normally should be sent out for consultation for a month before a decision can be made on when the change can come into force.
Sources: CNBC, X
Companies listed on the Stockholm Stock Exchange have a continuous reporting obligation, which simply states that market-affecting news must be made public. In addition to this, there are legal requirements for an annual report and a half-year report.
But to ensure a high and even level of information to the market, Nasdaq Stockholm requires, in addition to the legal requirements, that companies on the main list present quarterly reports – something that, for example, is not required of companies with shares listed on the trading platform Nasdaq First North.
For companies listed on Nasdaq's main list (and Nasdaq First North Premier), however, two of the quarterly reports per year can be replaced by so-called "interim reports". These are simpler presentations of the financial position and development, which do not meet the formal requirements of IAS 34 but can be adapted to the company's specific needs and conditions.
A company on the stock exchange's main list that completely wants to avoid quarterly reporting can also do so, if the company clearly explains how and why the deviation occurs.
Source: Nasdaq Stockholm
