Monday, July 6, 2009

Goldman Sachs Algorithmic Trading Theft: Programmer's Bail Set at $750,000.00

Reuters reports that Sergey Aleynikov, the Goldman Sachs computer programmer who alledgedly stole secret trading algorithms and software from the bank was being held in federal custody on Monday, pending the posting of $750,000.00 bail.
The bond also includes $75,000 in cash. Mr. Aleynikov was ordered to surrender his passport. Aleynikov is a Russian immigrant living in New Jersey.

Authorities claim that Aleynikov copied proprietary computer code and then uploaded it to a server in Germany.

The case is extremely interesting as the markets have risen recently but trading volumes have continue to drop. With low columes, algorithmic, or computer trading now constitutes a good chunk of all trading (possible majority), and Goldman Sachs is responsible to the majority of this algoritmic trading. In other words, it is possible that Goldman Sachs controls the markets and can make them go up or down at will.

The bizarre behavior of the markets lately, at a time when financial institutions were desperate to raise funds and keep their shares and the markets up, might well be explained by Goldman Sachs computer trading.

Investors and technical analysis traders would like nothing more than the return of some trading normalcy, and for these computer trades to disappear.

We want full disclosure!

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