22 August 2017
Find out more

Teza programmer developed code while still UBS employee

06 October 2009  |  8234 views  |  0 Digital Abstarct

A Teza Technologies programmer developed code relating to data storage while still a UBS employee, but the high-frequency trading start-up did not use it, CIO William Sterling has told a Chicago judge.

Teza hit the headlines in July when a computer programmer it hired, Segey Aleynikov, was arrested by the FBI, accused of stealing proprietary trading code from previous employee Goldman Sachs.

Aleynikov denies the allegations and his case is pending in Manhattan federal court.

Teza was set up by Citadel's former head of high-frequency trading, Mikhail Malyshev, and two of his colleagues at the firm, Jace Kohlmeier and Matthew Hinerfeld.

Citadel says it only learned about the new firm after Aleynikov's arrest, prompting the hedge fund to sue Malyshev, Kohlmeier and Hinerfeld.

It is asking for an injunction against the men for violating their non-compete agreements and is also seeking $300 million in damages from the defendants, according to Dow Jones.

Citadel raised the spectre of code theft, claiming in its original complaint that "Teza's decision to hire Aleynikov, an accused software thief, creates a substantial risk that they have stolen, or may be planning to steal, Citadel's proprietary code".

Now Teza says a former UBS employee wrote code on his own time after he had given the Swiss bank notice that he was leaving. At the time he wrote the code in his own home, he was technically still a UBS employee however he was no longer allowed in the office and had no access to any UBS systems.

Sterling, who also joined Teza from UBS, says that despite this, the code was not used.

Teza had planned to start for-profit trading on 1 December but Sterling says the legal issues it is facing means this is now unlikely.

Teza's Programmers Uploaded Unwanted Code, Judge Told - Bloomberg

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

UBS files code theft lawsuit

UBS files code theft lawsuit

14 July 2009  |  10016 views  |  3 comments
Citadel sues ex-staff for contract breach; raises code-theft spectre

Citadel sues ex-staff for contract breach; raises code-theft spectre

10 July 2009  |  6108 views  |  0 comments
Goldman in legal battle with hell-raising blogger

Goldman in legal battle with hell-raising blogger

15 April 2009  |  5327 views  |  0 comments

Related company news


Related company information

Goldman Sachs

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.niceactimize.comvisit www.vasco.com

Who is commenting?

A Finextra member Finextra Member Commented on: Real-time payments in...
A Finextra member Finextra Member Commented on: Barclays uses sensors...

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
11892 views comments | 26 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
10304 views comments | 22 tweets | 31 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
9912 views 0 | 5 tweets | 1 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
9622 views comments | 10 tweets | 8 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
9597 views comments | 19 tweets | 23 linkedin

Featured job

Find your next job