Three Wall Street Traders have been arrested after they borrowed their firm’s computer software source code with the idea of setting up their own business.
Flow Traders has specialised in building in-house software that responds instantly to information, trading securities, futures, options, exchange-traded-funds and commodities, bonds, and foreign exchange instruments. As such its source code would be pretty useful for someone starting up their own share trading business.
According to Network World, Jason Vuu worked for Flow Traders but wanted out. His friend Simon Lu wasn’t a Flow Traders employee but thought that the source code Vuu was using would be rather useful for a new business the pair were setting up.
Vuu, who quit in March 2013, sent secret e-mails to himself between August 2011 and August 2012. To cover the files’ nature he changed the file format of the attachments to make it difficult to recognise their content. Vuu shared source code with Lu using Dropbox.
Glen Cressman, who was another trader at the New York office of Flow Traders, sent e-mails to himself in December 2012 with trading strategies and valuation algorithms. It is not clear what his involvement with the other two was. Cressman claims he is innocent and when everything about the case is aired, it will be clear he did nothing wrong.
Jeremy Saland, a lawyer for Vuu, was quoted as saying that Flow Traders did not suffer any economic loss as the company’s algorithms and code weren’t taken or used in any malicious way that damaged or compromised their financial security