22 October 2017

Teza programmer developed code while still UBS employee

06 October 2009  |  8305 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  |  10087 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  |  6158 views  |  0 comments
Goldman in legal battle with hell-raising blogger

Goldman in legal battle with hell-raising blogger

15 April 2009  |  5372 views  |  0 comments

Related company news

 

Related company information

Goldman Sachs

Related blogs

Create a blog about this story (membership required)
visit www.fivedegrees.nlRegister now

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
11602 views comments | 17 tweets | 24 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
11361 views comments | 22 tweets | 27 linkedin
satelliteGates Foundation backs Ripple collaboratio...
9314 views comments | 13 tweets | 10 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
8408 views comments | 10 tweets | 22 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
8353 views comments | 9 tweets | 18 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job