This article came out a few weeks ago.
It basically highlights that the code itself is not the "secret sauce", but the environment its done in is. The best algo/quant programs are the ones that are the fastest in micro milliseconds. Its not the code, but the network its hauled over.
The algorithmic code partly created by Sergey Aleynikov is useless and has limited value if not placed in the right circumstances.
Goldman's fear wasn't that the code was stolen, but that the code that runs their HFT program was now open for discussion. No one was talking about this before the Aleynikov story hit.
www.advancedtrading.com/algorithms/showArticle.jhtml?articleID=218401501#undefined
If one believes that this type of trading is going to be around, just buy the telco infrastructure names like ATT, Verizon, Quest, and or Cisco.
You hit the Nail on the head. The code is not the point. They are smarter guys out there who can write code, buts its the idea that this type of code is out there.
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