You're now on the archive server. Commenting has been disabled.
The Citadel Trail Emerges, Goldman Injunction Likely To Follow Shortly
Just when one thought it is possible to have a big scandal erupt, in which Chicago is named and not have Ken Griffin involved, the Citadel trail emerges. Contrary to previous rumors that Getco may have been the unfortunate firm to land Bond, Serge Bond, Misha Malyshev's new outfit, Teza Technologies, emerges with a bang. Teza, run by Misha, whom #810081;">Zero Hedge has discussed previously, former Head of High-Frequency Trading at Citadel, together with another former teammate and recent Princeton grad (resume recently pulled from the interwebs), #810081;">Jace Kohlmeier, announced that it had suspended Sergey without pay after learning of the allegations. From #810081;">Bloomberg:
Aleynikov, 39, started at Teza on July 2, the day before he was arrested, the firm said in an e-mailed statement today. Teza, co-founded by Misha Malyshev, a former trader at hedge fund Citadel Investment Group LLC, said it first learned of the allegations on July 5 and suspended Aleynikov without pay following an investigation.
The firm “was not aware of the alleged misconduct” and offered to cooperate with the government, according to the statement. James Margolin, a spokesman for the FBI’s New York Office, said the investigation is continuing.
One wonders if the arrest of Sergey one day after his formal start at Teza was strangely coincident. It is easy to imagine that 85 Broad would like as little hi-fi competition in any way, shape or form, and Misha, whose group at Citadel was the only profitable one last year, would have likely presented just such a "challenge." Arguably Goldman was just waiting for the Teza confirmation before throwing a 10,000 page injunction against Teza to prevent the current group from ever trading 1 share of high-frequency traded SPY in their combined lifetimes, based on possible information that Sergey may have "leaked" to Misha and Jace. And another one bites the dust.
»
- 5396 reads
- Printer-friendly version
- Send to friend
Similar Articles You Might Enjoy:
- Citadel Joins The Program Trading Industrial Espionage Fray, Sues Malyshev And Teza
- Citadel Calls Former Head Of HFT Trading's Current Venture, "A Veritable Pirate Ship Of Illegal Activity"
- Meet "Ben Pu" - The Aleynikov Sequel: Quant Powerhouse Citadel Arrests Former Employee For Stealing "Alpha" Code
- Citadel Lowers Management Fee: Beginning Of The End, Or New Beginning?
- Sergey Aleynikov Seeks Dismissal Of Case
Ouch.
I got my 0H cap. I wore it to the grocery store today. That is all.
This isn't even news. You're twisting a non-event into some conspiracy theory....
Drink up. It's only Kool-Aid
Anonymous:
Huh? How much is Goldman paying you to follow this blog and comment?
Oh, and Jace contributed $2,400 to the Obama campaign...from his address in Chicago.
Obama isn't dirty? Yup, and the Pope doesn't wear pantyhose.
I wish I could understand all of this...
I wonder if the stolen code actually proves the front running allegations and that's why they've gone absolutely bananas?
I'll bet as much comes of this as the Japanese bearer bond guys, or the North Korean ship that was being tracked off the coast of China.
Let's see if the Feds can keep Sergey alive long enough to hear some of the more gruesome GS stuff! Can't wait to find out if the program really front-runs.
Man, lot of hate coming your way over the last few days, Tyler. Stay strong brother
Wasn't GS leasing tankers full of oil?
If so, then this http://www.nakedcapitalism.com/2009/07/verlerger-on-oil-glut-there-has-n... doesn't look promising for them...
So Misha left Citadel months ago, taking a bunch of high frequency traders with him, and because he hired Sergey Citadel is somehow involved? If there's anyone involved, it's Misha.
Wow, what utter rubbish you write and pretend to call news.
"Wasn't GS leasing tankers full of oil?"
I am pretty sure those will be unloaded ahead of the herd.