Citadel Is Accusing A Rival Firm Of Stealing Their Secret Trading Formulas

ken griffin

Photo: Milken Institute

Ken Griffin’s hedge fund Citadel is pointing fingers at a rival firm Jump Trading, accusing the prop trading fund of stealing trading algorithms via former Citadel employees, according to Reuters.Citadel hasn’t filed an official lawsuit, but is petitioning the courts for Jump to release documents on trading strategy and records—a move that is legal in Illinois, where the two funds are based, Reuters reported.

From Reuters:

According to Citadel’s petition, about 10 employees from that same area, Citadel’s tactical trading group, have moved to Jump Trading since 2005.

Over that time, some of the strategies used by Citadel’s tactical trading group have become less profitable. According to the fund manager’s petition, the strategies are behaving in a way consistent with their having been copied by rivals.

Jump, on the other hand, has denied Citadel’s claims and says the $13 billion hedge fund is just using the possible lawsuit as a tactic to get a glimpse of Jump’s secret trading formulas.

Read the full Reuters report here >

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