How to create a blackout period

A blackout period is a period of at least three consecutive business days, but typically not more than 60 days (may vary depending on company) during which the majority of employees at a particular company are not allowed to trade. A blackout period usually occurs when major changes are being made to the company plan.

Carta has a Blackout Period functionality. Please follow the steps below to set it up.

  • On your main interface, navigate to “Compliance”, and select “Blackout periods” from dropdown menu;
  • Follow the steps on the left-hand side and fill out the blackout details as required;
  • Select the affected participants by including the codes appropriate for the blackout period, then review the list of affected participants. You can download the list by clicking “Export List” on the top right-hand corner of the page;
  • Choose the events that the blackout period applies to. You can select individual events or all of them; 
  • Last step provides a summary of all the blackout details you entered for your reference. In addition, you have an option to send an email notification to participants regarding the blackout details, that will go out 5 days before the blackout period starts; 
  • After the blackout period is created, you can see it listed under “Active blackout period in effect”. If the blackout is scheduled for a future date, the status will show as “Scheduled”, and you will have the option to edit, delete or view. However, if the blackout is on, the status will be marked as “Active” and you will only be able to view. 
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