Tucked into a 2016 Securities and Exchange Commission Office of Inspector General (OIG) report is little noticed reprimand regarding the security of computer trading code that is currently sending chills up the spine of professional algorithmic firms.
The report revealed that an SEC quantitative analyst, empowered to inspect the algorithms behind many of the top fund managers, was charged with improperly requesting and downloading confidential computer code to his personal computer (along with defrauding the SEC regarding hours worked, an issue first reported in The Wall Street Journal). While the OIG did not affirm the allegation, according to OIG spokesperson Raphael Kozolchyk, the issue was nonetheless raised in the OIG’s semi-annual report to Congress.
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