It starts as a Tom Clancy novel:
While most in the US were celebrating the 4th of July, a Russian immigrant living in New Jersey was being held on federal charges of stealing top-secret computer trading codes from a major New York-based financial institution—that sources say is none other than Goldman Sachs.
This is what Matthew Goldstein – Reuters- wrote yesterday.
The Russian immigrant is Sergey Aleynikov, who lives in the States for 19 years now and was arrested on the 3rd of July at Newark Liberty Airport after returning form Chicago where he recently took up a new job. He left his former firm – a Big Wall Street fish – early June. That firm was Goldman Sachs – so we learn on LinkedIn. He joined in May 2007 as a computer specialist and left 6 weeks ago as a Chicago firm offered him three time the 400.000 USD salary he earned with GS
From LinkedIn:
The bio says he was responsible for “development of a distributed real-time co-located high-frequency trading platform.” In his own words, he goes on to describe the platform as “a very low latency (microseconds) event-driven market data processing, strategy and order submission engine.”
The criminal complaint brought forward, describes the platform as:
The Financial Institution has devoted substantial resources to developing and maintaining a computer platform that allows the Financial Institution to engage in sophisticated high-speed, and high-volume trades on various stock and commodities markets. Among other things, the platform is capable of quickly obtaining and processing information regarding rapid developments in these markets.
Now, this is the golden egg in program trading these days. And PT has become the single most important feature in trading these days. More than 50% of the volume traded on the NYSE is generated by the machines. And Goldman is leading the herd in this field.
Although the information about this special program was uploaded already some weeks ago, it’s not clear why Goldman and the authorities waited so long to move on Aleynikov.
Apparantly the deed was done in the space of three minutes between 5.21 and 5.24 on the afternoon of June 5.
32 MB were transferred to some file hosting service based in Europe. Germany to be precise.
In the mean time we mention that one week Goldman ceased almost his PT, the NYSE tried to change the PT-reporting rules and on the 2nd the trading hours on the NYSE were extended due to a ‘glitch’.
To be continued….
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While most in the US were celebrating the 4th of July, a Russian immigrant living in New Jersey was being held on federal charges of stealing top-secret computer trading codes from a major New York-based financial institution—that sources say is none other than Goldman Sachs.
This is what Matthew Goldstein – Reuters- wrote yesterday.
The Russian immigrant is Sergey Aleynikov, who lives in the States for 19 years now and was arrested on the 3rd of July at Newark Liberty Airport after returning form Chicago where he recently took up a new job. He left his former firm – a Big Wall Street fish – early June. That firm was Goldman Sachs – so we learn on LinkedIn. He joined in May 2007 as a computer specialist and left 6 weeks ago as a Chicago firm offered him three time the 400.000 USD salary he earned with GS
From LinkedIn:
The bio says he was responsible for “development of a distributed real-time co-located high-frequency trading platform.” In his own words, he goes on to describe the platform as “a very low latency (microseconds) event-driven market data processing, strategy and order submission engine.”
The criminal complaint brought forward, describes the platform as:
The Financial Institution has devoted substantial resources to developing and maintaining a computer platform that allows the Financial Institution to engage in sophisticated high-speed, and high-volume trades on various stock and commodities markets. Among other things, the platform is capable of quickly obtaining and processing information regarding rapid developments in these markets.
Now, this is the golden egg in program trading these days. And PT has become the single most important feature in trading these days. More than 50% of the volume traded on the NYSE is generated by the machines. And Goldman is leading the herd in this field.
Although the information about this special program was uploaded already some weeks ago, it’s not clear why Goldman and the authorities waited so long to move on Aleynikov.
Apparantly the deed was done in the space of three minutes between 5.21 and 5.24 on the afternoon of June 5.
32 MB were transferred to some file hosting service based in Europe. Germany to be precise.
In the mean time we mention that one week Goldman ceased almost his PT, the NYSE tried to change the PT-reporting rules and on the 2nd the trading hours on the NYSE were extended due to a ‘glitch’.
To be continued….
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