UBS has filed a lawsuit against three quant former employees alleging that they stole proprietary trading software with the intent of using it at their new employer, Jefferies & Company. Earlier this month, Jefferies said it had added five UBS traders to its quantitative stratefies ales and trading group, including Jatin Suryawanshi who ran the quant trading desk at UBS.
Suryawanshi, who joined Jefferies as a managing director and head of global quantitative strategies, and two collegues, Partha Sarkar and Sanjay Girdhar, who joined Jefferies as senior vice presidents, are named in the lawsuit filed by UBS. UBS says the three conspired to steal the “source code” for the algorthmic trading programs that are at the heart of its quant trading program. All three were previously at UBS. Suryawanshi was head of algorithmic trading for the Americas. Before that he was with Goldman Sachs in its algorithmic trading group. Sarkar and Girdhar were part of the algorithmic development team at UBS.
The lawsuit was filed in March but it hasn’t been widely reported. (We couldn’t find any earlier reports, actually.) It isn’t clear what the current status of the litigation might be. None of the parties involved could be immediately reached for comment.