Teza Technologies founder Mikhail Malyshev said the ethical violation was one reason why he would never have asked his ex-employee and former Goldman Sachs programmer, Sergey Aleynikov, for the bank’s high-frequency trading (HFT) code.
Reason #2: “They’re not good at it.”
Malyshev, who was formerly head of high-frequency trading at Citadel, told a Manhattan courtroom that Teza had rigorous rules against bringing proprietary information to the firm. But also, he said, he wouldn’t even be interested in the code.
Goldman is not a legitimate competitor in HFT, he says.
In fact, banks in general produce inferior HF traders, says the former Citadel trader who, in a year, earned $150 million using speed-trading technology.
Malyshev himself was fined $1.1 million earlier this year in a separate case in which Citadel accused him of violating his non-compete agreement.
In the case in which he testified yesterday, Malyshev’s now ex-employee, Sergey Aleynikov, is accused of secretly copying the confidential source code for Goldman’s HFT platform and then uploading it to a server in Germany, so that he could build a similar trading platform at Teza. Aleynikov denies the claims.
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