Algorithmic code theft on the rise

To compete for market share, ATSs around the world are using
multibillion-dollar computers and complex algorithimic codes to match trades
at low costs within fractions of a second. Employers are paying code writers
millions of dollars for their expertise. As high frequency trading gains
popularity the market for code writers is becoming cutthroat. In the past
year, several companies have accused former employees of stealing code and
taking them to their next employer.

In April media outlets reported that Societe Generale charged a former
employee for allegedly stealing trade secrets. The Paris-based bank said its
survellence cameras showed the employee, who worked with the New York high
frequency trading group, printing out hundreds of pages of source code. According
to Societe Generale, the employee soon resigned. In July, 2009, Reuter's
reported a former Goldman Sachs programmer was arrested on charges that he
allegedly stole source code for high frequency trading software. Reuters said
the new employer offered him $1.2-million a year, while Goldman was only
paying him $400,000 a year. Last June, UBS also charged three former
employees with allegedly stealing trading software with the intent of using
it at their new employer