Markets bloggers are atwitter this morning with news that the U.S. Justice Department arrested a former Goldman Sachs employee and charged him with stealing computer codes related to the firm’s high-speed trading platform. Dow Jones reports: Sergey Aleynikov, a naturalized U.S. citizen whoemigrated from Russia, allegedly unlawfully copied, duplicated,downloaded and transferred computer codes from a New York-basedfinancial institution and uploaded the codes to a computer server inGermany, according to a complaint filed by federal prosecutors.The complaint from the government didn’t specifically referenceGoldman Sachs. Goldman Sachs was referenced during Saturday’s bailhearing, and a person familiar with the matter confirmed that Aleynikovworked as a computer programmer for the company.The person familiar with the matter also said, “The theft has had no impact on our clients and no impact on our business.”Questioned by Federal Bureau of Investigation officials, Aleynikovadmitted only to “unwitting conduct,” that whatever he is accused ofdoing wasn’t done on purpose. Aleynikov’s lawyer, federal defenderSabrina Shroff, said she believes her client is innocent.
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Goldman total principal program trading has declined by 60%
The most recent, presumably correct, data has been released by the NYSE:Goldman total principal program trading has declined by 60% from 1,336million shares in the prior week to 571 million in the current. The endof the Russell rebalancing likely played a major role in the decline asoverall NYSE program trading volume was also impacted by a comparablemargin. Yet what was odd is that last week's Russell indexing actionwas the lowest volume rebalancing event in years.
Nonetheless,even with the material decline in overall program trading, it stillaccounted for 38% of the NYSE weekly volume, 12% higher than therunning 52 week average. With the ever increasing dominance (I plan onsummarizing the most recent three months' PT action early next week) ofprogram trading, is it any wonder why all of a sudden even the MSM isexpressing such persistent interest into not only peripheral personnelscandals associated with program trading but the core issues as well.
July 13th, 2009 All quiet at the Aleynikov McMansion
If only the fiber-optic cable wires beneath Sergey Aleynikov’s home could talk.Aleynikov, the former Goldman Sachscomputerprogrammer accused of stealing the firm’s secret codes, appears to havepacked up with his wife and three daughters and left his home in NorthCaldwell, New Jersey, for at least the weekend.
On a sunny Sunday afternoon, the house was silent, except for a deerseen running nearby. A thick stack of mail sat in the mailbox, where aReuters News reporter left a business card.
Aleynikov’s home sits at the foot of a hill in an exclusive streetoff Mountain Avenue, where homes are listed in the $1.5 million range.
One resident, outside playing catch with his dog, wasn’t interestedin talking about his now-famous neighbor, who is facing federal theftcharges stemming from the alleged theft.
“Leave the guy alone,” the neighbor said.
The home where Aleynikov lives is one of 23 “luxury” estates knownas “The Estates at Hilltop.” According to the web site for the for KHovnanian Homes,the builder, the homes are being built on three-quarters to one acre, surrounded by 280 acres of preserved open space.
Aleynikov’s home is on the first lot in the development, where someof the towering homes appeared to still be under construction or vacant.
The computer programmer’s lawn was perfectly landscaped and two garbage bins sat outside near the garage.
According to the complaint filed against Aleynikov, he was paid$400,000 by Goldman Sachs, but stood to see his salary tripled in hisnew position with Teza Technologies LLC, a Chicago-start-up.
The owner is listed as K. Hovnanian at North Caldwell II, according to Essex County property records.
The New York Stock Exchange quietly announced last week that it would end its practice of requiring companies to report all their program trading — a move that helps shield large investment banks, particularly Goldman Sachs, from public scrutiny.
The new rule means the public will no longer be able to tell if large investment banks are manipulating the stock market for their own gain, says Matt Taibbi, the journalist whose Rolling Stone article on Goldman Sachs’ role in asset bubbles over the past century has rocked the financial world.
According to previous NYSE rules, any company that carried out program trading — essentially, large computer-automated trades worth more than $1 million — had to report the trades to the NYSE, which then made the information publicly available.
But, under new regulations (PDF) published last week, that requirement has been removed.
“The NYSE announced that it will no longer be releasing its weekly program trading data,” Taibbi wrote in a blog posting. “This is quiet obviously a move designed to make it even more impossible to track what’s going on in the NYSE and shield, in particular, Goldman Sachs.”
Taibbi argues that the move is designed to protect investment banks from bloggers who are exposing the companies’ stock market manipulations. Goldman Sachs is singled out because the investment bank’s share of principal NYSE trading has gone from 27 percent at the end of 2008 to fully 50 percent of trades in recent months.
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发表于 2009-7-6 11:28 PM
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发表于 2009-7-7 12:15 AM
