Last year, Tabb Group famously researched the value of a millisecond in an automated trading environment. I wonder what the value of the secret trading strategies from one of the industry’s benchmark leaders is?
A Reuters blogger is reporting that a disgruntled former employee (Sergey Aleynikov) appears to have stolen Goldman’s program trading source code and uploaded it to a server somewhere in Germany. He was arrested June 4th and is being held on charges of “theft of trade secrets”. It’s a scene more out of James Bond than Jersey City, but it appears to be for real.
Goldman’s program trading platform is a crown jewel within the massively profitable firm. It will be interesting to see if any more information is made public, if there is fallout from their trade secrets possibly being for sale, and whether they will change their trading strategies.