Confidential Treatment Order (CTO)
A Confidential Treatment Order (CTO) is a request submitted to the U.S. Securities and Exchange Commission (SEC) by a public company seeking to keep certain sensitive information in its filings confidential. The CTO allows the company to withhold proprietary or commercially sensitive information from public disclosure to protect its competitive position. If granted, the SEC permits the company to omit specific details from filings, such as contract terms or trade secrets, for a specified period.
Example
A tech company may file a CTO with the SEC to keep certain terms of a licensing agreement confidential in its quarterly report, preventing competitors from accessing sensitive business details.
Key points
• A CTO allows companies to keep sensitive information in SEC filings confidential.
• Common reasons include protecting proprietary information or trade secrets.
• The SEC reviews and grants CTOs for a limited time, balancing transparency with competitive interests.
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