LT/UT Sector Blacklisting

[Garral]

Having finally got myself delving into the greatness that is TC, I have just invested in several UTs and all has been well. I read up on the Trade Command Mk3 manual and it mentioned sector blacklisting. I know I can just use Local Traders, but I figured I'd ask here first about the following:

5.3 Sector Blacklist
The script plugin.autotrade.blacklistsector replaces the old lockmaster system.
It is being used to create and manage a blacklist of all sectors and stations
that traders should not select as target. This is the code behind the "Pilot Radio"
functionality.

I'm looking for a little clarification on that if anyone could help me out. Does this mean they handle blacklisting automatically, or does it not matter as they'll still be idiots about trying to sell in pirate sectors?

[Catra]

theyll handle it automatically if they have fight command software 1&2 installed (and will only transmit it to other freighters with the software installed)

[Garral]

Is this retroactive for new freighters that get added to my (soon to be) immense trading fleet?