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Can I just make sure that someone mentions the most powerful motive that a shop like GS would likely have? HFT barrier to entry is expertise. Any firm has as t
by harry8 12y ago
Can I just make sure that someone mentions the most powerful motive that a shop like GS would likely have?
HFT barrier to entry is expertise. Any firm has as their biggest competitive risk their employees setting up with that expertise in competition. It happens all the time. To counter that the optimal strategy of an HFT shop where an expert resigns is to sue them as far and deep into the ground as they can why?
As a lesson to all remaining staff
This gets an HFT shop additional barrier to entry from competition from existing experts, their own.
Did GS deliberately follow this optimal tactic? I don't know, I have no evidence. Maybe the fact it is optimal for other reasons is unrelated and possibly even unknown to them. Form your own opinion on the balance of probabilities there.
- abalone 12y agoCouple points: 1. They didn't sue him. They complained to the FBI and the government criminally prosecuted him for violation of the Economic Espionage Act. 2. The basis of the prosecution was that he exfiltrated 500,000+ lines of source code. Doubtful this particular "tactic" could be more generally applied unless staff are engaging in similar activities now clearly prohibited under the EEA.