Citadel Securities reached a truce with a British hedge fund over the tried hiring of a senior dealer, ending a lawsuit that was set to contemplate the make-up of a secret algorithm.
Ken Griffin’s market maker and GSA Capital Partners LLP reached a confidential settlement, GSA stated in a press release Thursday. The settlement adopted claims that GSA Capital obtained info on a closely-guarded buying and selling technique when it sought to recruit a former quant researcher, Vedat Cologlu, at Citadel Securities.
The 2 corporations “acknowledge and respect the significance and worth of the opposite’s rights over their confidential info and mental property,” GSA stated.
Citadel didn’t reply to a request for remark.
The London lawsuit, filed on the finish of 2019, centered on a vital automated buying and selling mannequin referred to as the ABC Technique that value Citadel Securities greater than $100 million to develop. The algorithm was so secret that simply 15 of the corporate’s 3,000 staff had entry to its “strategic logic.”
Attorneys for Citadel Securities had insisted that officers at GSA Capital couldn’t “unsee” the data or “put it out of their minds.”
However the hedge fund stated earlier that there was nothing within the buying and selling technique that may have enabled it to reverse engineer Citadel Securities’ buying and selling mannequin. GSA stated it anticipated that the code would wish to have been “written from scratch” over a interval of many months.
Each corporations in addition to GSA Capital’s authorized counsel gave undertakings to the courtroom as a part of the settlement settlement, in response to a courtroom submitting.
Cologlu stated in an e-mail that he additionally signed a confidential settlement with Citadel Securities “with no admission of legal responsibility on my half.”