High-speed trading and other financial firms aggressively protect their code, considering it a trade secret and a competitive advantage. Goldman required employees to sign a confidentiality agreement as part of their employment and that any software developed by them in their jobs were the property of the investment bank.
Sergey Aleynikov's conviction is the second guilty verdict in as many months involving the theft of high-speed trading code. Last month, Samarth Agrawal, a former Société Générale trader, was convicted of stealing the bank's high-frequency trading code after he freely admitted to sharing aspects of the bank's computer code with a rival.
The trial of Mr. Aleynikov focused on the complex computer programs used by investment banks, hedge funds and other securities firms to squeeze more profits from their trading operations. Such high-frequency trading involves rapid-fire buy and sell orders aimed at capitalizing on minuscule differences in price.
In its second day of deliberations, the jury found Mr. Aleynikov guilty of theft of trade secrets and transportation of stolen property. He faces as long as 10 years in prison on the trade secrets charge.
U.S. District Judge Denise Cote changed his bail conditions after the verdict, requiring Mr. Aleynikov to be subject to home confinement pending sentencing.
The judge also suggested that his name be added to a watch list to prevent him from leaving the country. Mr. Aleynikov is from Russia originally.
Kevin Marino, Mr. Aleynikov's lawyer, declined to comment after the verdict.
Goldman Sachs declined to comment on the verdict.
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