In a sweeping move to enhance market transparency, the U.S. Securities and Exchange Commission (SEC) announced new rules on Thursday mandating faster and more detailed disclosures of insider trades by corporate executives. The regulations, set to take effect in early 2025, are designed to curb the advantage insiders have over ordinary investors and restore public trust following several high-profile scandals. Under the new rules, corporate insiders — including CEOs, CFOs, and board members — must now report stock trades within one business day, compared to the current two-day window. Additionally, executives must provide greater detail about the purpose behind each transaction, including whether the trade is part of a pre-scheduled trading plan or a discretionary move. "This is about leveling the playing field," SEC Chair Gary Gensler said during a press conference. "Investors deserve to know when and why insiders are buying or selling shares." The announcement rattled markets on Thursday, with the S&P 500 shedding 0.8% amid concerns that the new regulations could dampen insider trading activity, traditionally viewed by some investors as a bullish signal. Tech and healthcare sectors, where insider trading is more prevalent, were among the hardest hit. Market analysts are divided on the longer-term effects. "In the short run, we could see reduced liquidity and increased volatility as insiders adjust to the new compliance landscape," said Maria Thompson, chief market strategist at Vanguard Capital. "However, in the long term, greater transparency should enhance investor confidence and potentially lower the cost of capital for compliant firms." The SEC's move comes as part of a broader effort by the Biden administration to tighten corporate governance standards. It follows a year of record-breaking corporate profits, with several executives facing criticism for cashing out significant stock holdings shortly before disappointing earnings reports. Meanwhile, corporate America is bracing for the changes. The Business Roundtable, a group representing major U.S. CEOs, issued a statement expressing concern over the "operational challenges" the tighter reporting timeline could impose but pledged to work with regulators to ensure a smooth transition. Investors and compliance officers alike will be closely monitoring further guidance from the SEC in the coming months, as companies scramble to update their internal procedures to adhere to the new standards. With enforcement actions expected to ramp up, the era of opaque insider trading practices could soon be nearing its end.