Tuesday :: Jul 7, 2009

Open Thread

by Mary

So what's up with Goldman Sachs these days? NPR's Marketplace had an interesting piece tonight about how some of GS's crown jewels (their top-secret computing algorithms which allows them to make money off of their stock trading programs) was suspected to have been stolen by one of their ex-employees.

Although Marketplace was unable to confirm the company that had the problems was Goldman Sachs, this backgrounder from ZeroHedge sure makes it likely.

Back-up: This week's NYSE Program Trading report was very odd: not only because program trading hit 48.6% of all NYSE trading, a record high at least since the NYSE has kept tabs on this data, and a datapoint which in itself was startling enough to cause some serious red flags as I jaunt from village to village in what little is left of Europe's bison country, but what was shocking was the disappearance of the #1 mainstay of complete trading domination (i.e., Goldman Sachs) from not just the aforementioned #1 spot, but the entire complete list. In other words: Goldman went from 1st to N/A in one week.

Furthermore, ZeroHedge had just last week reported that the NYSE had decided to change the way it reports its weekly program trading report. Could it be that this change was in response to the theft of GS's trading program algorithms? Hummmm.... Might be interesting to keep a watch on this story for a few days.

Mary :: 12:00 AM :: Comments (2) :: Digg It!