Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market
by Scott Patterson · 11 Jun 2012 · 356pp · 105,533 words
helped spawn would come under a giant microscope. CHAPTER NINETEEN THE PLATFORM From: Mikhail Malyshev Sent: 11:11 pm To: Sergey Aleynikov Re: let’s move fast It was nearing midnight as Sergey Aleynikov nervously clicked on the e-mail from his future boss. The subject line—“let’s move fast”—said it all
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for him in the terminal. Special Agent Michael McSwain, a stocky man with a salt-and-pepper buzz cut, approached, flashing a badge. “Are you Sergey Aleynikov?” he asked in a raspy voice that seemed a dead-on impression of Clint Eastwood. “Yes?” “You’re under arrest.” “This must be a mistake
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media dubbed the Flash Crash, the fierce debate over what had become of the U.S. stock market that had erupted after the arrest of Sergey Aleynikov grew even more heated. Angry words were exchanged in the halls of Capitol Hill, on financial television shows, and in the backrooms of giant trading
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cheaper to trade in the bargain. But the computerization of trading had a perverse side effect. Secret formulas, like the code taken by Goldman programmer Sergey Aleynikov, became the currency of the realm of the new cyberkings of Wall Street. Trading had become a cloak-and-dagger game of hide-and-seek
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-a-second glitches in the market’s plumbing. As Thomas Peterffy had said, it was a complete mess. Just a week before, former Goldman programmer Sergey Aleynikov had been sentenced in a New York courtroom to ninety-seven months in prison for stealing Goldman’s trading code. (In February 2012, a federal
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,” by Aaron Lucchetti, Susanne Craig, and Dennis Berman, The Wall Street Journal, April 21, 2005. CHAPTER 19: THE PLATFORM 1. It was nearing midnight as Sergey Aleynikov Many of the details in this chapter come from testimony given in U.S. v. Aleynikov, U.S. District Court, Southern District of New York
Flash Boys: A Wall Street Revolt
by Michael Lewis · 30 Mar 2014 · 250pp · 87,722 words
FLY EPILOGUE RIDING THE WALL STREET TRAIL Acknowledgments INTRODUCTION WINDOWS ON THE WORLD I suppose this book started when I first heard the story of Sergey Aleynikov, the Russian computer programmer who had worked for Goldman Sachs and then, in the summer of 2009, after he’d quit his job, was arrested
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takes my breath away. As does the Goldman high-frequency trading programmer arrested for stealing Goldman’s computer code. When he worked for Goldman Sachs, Sergey Aleynikov had a desk on the forty-second floor of One New York Plaza, the site of the old Salomon Brothers trading floor, two floors above
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, Goldman Sachs, J.P. Morgan, Barclays, UBS, Citi, Deutsche Bank. †† Stampfli has not been charged with any wrongdoing. CHAPTER FIVE PUTTING A FACE ON HFT Sergey Aleynikov wasn’t the world’s most eager immigrant to America, or, for that matter, to Wall Street. He’d left Russia in 1990, the year
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refused to tell him his crime. He tried to guess it. His first guess was that they’d gotten him mixed up with some other Sergey Aleynikov. Next it occurred to him that his new employer, Misha Malyshev, then being sued by Citadel, might have done something shady. Wrong on both counts
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tricky, with his words. “That’s not what happened,” said Serge. “The document was being crafted by someone with no previous expertise in the matter.” Sergey Aleynikov’s signed confession was the last anyone heard from him, at least directly. He declined to speak to reporters or testify at his trial. He
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how many more they’ll find?” A billion here, a billion there: It adds up. CHAPTER EIGHT THE SPIDER AND THE FLY The trial of Sergey Aleynikov ran for ten days in December of 2010 and was notable for its paucity of informed outsiders. High-frequency trading was a small world, and
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judge in the case said that the idea that a high-frequency trading program was some kind of science was “utter baloney.” The jury in Sergey Aleynikov’s trial consisted mainly of high school graduates; all of the jurors lacked experience programming computers. “They would bring my computer into the courtroom,” recalled
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walked down Wall Street, he thought about it some more. “I’m actually nauseous,” he said. “It makes me sick.” THE MYSTERY THE jury of Sergey Aleynikov’s peers had more trouble solving was Serge himself. He appeared, and perhaps even was, completely at peace with the world. Had you lined up
Flash Boys: Not So Fast: An Insider's Perspective on High-Frequency Trading
by Peter Kovac · 10 Dec 2014 · 200pp · 54,897 words
Education of Brad Katsuyama Chapter 3: Trying to Connect the Dots Chapter 4: There’s Another Explanation, But It’s Not As Interesting Chapter 5: Sergey Aleynikov Chapter 6: How To Take Billions From Wall Street Chapter 7: IEX Launches Chapter 8: My Dinner with Sergey Epilogue Summing It Up Preface: What
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later chapters Lewis reveals some knowledge of the vast amounts of data available to investigators: John Schwall complains about his brokerage firm recording his email; Sergey Aleynikov talks about using a source control system called subversion, which records each and every change to the computer code used for trading. In fact, every
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oversight. What do Scott Rothstein, Arthur Nadel, and Bernie Madoff have in common? Serving as hedge fund managers, and serving time in jail. Chapter 5: Sergey Aleynikov There’s not too much to add to this chapter, as (a) it mostly focuses on a single individual, and (b) it’s largely a
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pool trades. This is, of course, absurd. [96] With now typical inconsistency, in Chapter 8, Lewis roundly mocks an “expert witness” at the trial of Sergey Aleynikov for his ignorance: he “still had never actually done any high-frequency trading himself.” [97] See “Katsuyama, Narang, Lewis Debate Speed Trading,” Bloomberg TV, April
Crapshoot Investing: How Tech-Savvy Traders and Clueless Regulators Turned the Stock Market Into a Casino
by Jim McTague · 1 Mar 2011 · 280pp · 73,420 words
, 230, 240, 242, 249, and 270 [Release No. 34-51808; File No. S7-10-04] RIN 3235-AJ18, Regulation NMS, page 19. 3. Screaming Headlines Sergey Aleynikov, a thin, amicable, 40-year-old naturalized citizen from Russia with a Richard-the-Lionhearted beard, thick black eyebrows, and a full head of thick
Broken Markets: How High Frequency Trading and Predatory Practices on Wall Street Are Destroying Investor Confidence and Your Portfolio
by Sal Arnuk and Joseph Saluzzi · 21 May 2012 · 318pp · 87,570 words
the implementation of the SEC’s Reg NMS in 2007, it stayed out of the mainstream media until mid-2009. Over the July 4 weekend, Sergey Aleynikov was arrested by the FBI at Newark Airport for stealing code from his prior employer, Goldman Sachs, and trying to bring it to his new
Automate This: How Algorithms Came to Rule Our World
by Christopher Steiner · 29 Aug 2012 · 317pp · 84,400 words
Street: Aiding the Economic Recovery, or Strangling It?” Time, April 4, 2011. 2. While building his team at Teza, Malyshev recruited a Goldman Sachs programmer, Sergey Aleynikov, by offering to triple his $400,000 salary to $1.2 million. Aleynikov agreed to come over and made a hasty move to Chicago. A
The Quants
by Scott Patterson · 2 Feb 2010 · 374pp · 114,600 words
next LTCM problem will happen in less than five minutes.” The world of high-frequency trading leapt into the media spotlight in July 2009 when Sergey Aleynikov, a quant who’d just quit a job writing code for Goldman Sachs, stepped off a plane at Newark Liberty Airport after a trip to
Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America
by Matt Taibbi · 15 Feb 2010 · 291pp · 91,783 words
war on Goldman became legend when his seemingly far-fetched conspiracy theories came sensationally true that summer. That’s when a Russian Goldman employee named Sergey Aleynikov was alleged to have stolen the bank’s computerized trading code. Aleynikov worked at precisely the desk Zero Hedge had accused of being involved in
Economists and the Powerful
by Norbert Haring, Norbert H. Ring and Niall Douglas · 30 Sep 2012 · 261pp · 103,244 words
to between a quarter and a third of the investment proceeds (CapQM 2009). A Reuters news report points at another troublesome issue. In July 2009, Sergey Aleynikov, a US and Russian national, was arrested on charges of theft just after he left his job as a programmer at Goldman Sachs. He had