Developing story in the automated trading world. A few days ago the Russian immigrant Sergey Aleynikov(LinkedIn) was arrested on charge of stealing Goldman Sachs’ source code for high frequency automated trading software.

This Aleynikov made 400k a year at GS and was responsible for “development of a distributed real-time co-located high-frequency trading platform”. He left the Wallstreet powerhouse for the new firm Teza who paid him 1,2 million a year. Teza is a startup by former Citadel traders. Strange enough, after his very first day at his new job he was arrested for allegedly trying to steal Goldman’s trading secrets.

The Reuters commentary and especially the well-informed weblog Zerohedge smell a rat in this strange case. Suggestions are GS may just want to corner a possible competitor. Anyhow, this affair may help giving an insight in the secretive business of Wallstreet’s program trading. And Sergey? The Russian ballroomdancer / programmer / actor is evolving into some kind of cult hero. Mr Bean bringing down Goldman, who knows.

Jack
Jack