Vedder Thinking | News Sam Tyfield Comments on Recent HFT Firm Settlement Regarding Alleged Code Theft
Sam Tyfield, a Partner in Vedder Price's London office and member of the firm's Investment Services and Finance & Transactions groups, was recently quoted in the Financial News article "HFT Firm Tibra Settles with KCG over Alleged Code Theft." The piece discusses the indispensable value of a high frequency trading (HFT) firm’s computer code and software, citing the out-of-court settlement between HFT firms KCG Holdings and Tibra Capital.
KCG Holdings took legal action against rival firm Tibra Capital after one of KCG's employees moved to Tibra. KCG alleged that the former employee stole its computer code and complex software and provided the confidential information to Tibra. The matter, originally intended to be confidential, was resolved earlier this year in an out-of-court settlement between the two firms.
Mr. Tyfield weighed in on the importance of a firm's computer software and confidentiality during a code-theft case stating, "Issues of code security, and enforcement of confidentiality and restrictive covenants, crop up all the time when people join or leave firms and while people are at firms. You might not want your code to be subject to external scrutiny, to rack up large costs or to have your management’s time diverted from business. It does not mean any wrongdoing has been proved."
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