Could Jane Street & Millennium be fighting over Destriero's SPX Skew Lock?

Discussion in 'Options' started by guru, Apr 13, 2024.

  1. guru

    guru

    https://www.reuters.com/legal/big-h...treet-allegedly-stealing-strategy-2024-04-12/

    Big hedge fund firm Millennium sued by Jane Street for allegedly stealing strategy
    "Millennium Management, one of the world's largest hedge fund firms, was sued on Friday by rival Jane Street Group, which accused it of stealing a valuable in-house trading strategy after two traders defected."


    They found it in 2023, and this looks like possibly an options strategy. Could it be $SPX Skew Lock? Because that strategy can really be this profitable, and it started showing up in 2023 when initially found by @destriero. Meaning, they might've seen some of his trades in COB.


    https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rEXVjFfBUnn4/v0
    upload_2024-4-12_22-26-0.png
    upload_2024-4-12_22-17-32.png


    I use similar strategy mostly on equity options but have $SPX backtests showing 700% return for at least one year, and there really isn't anything that good in options.
    And I almost tripled my live account in less than a year mainly from equity options.
    https://x.com/deus_trader/status/1776623798021914778
     
    qwerty11, trend2009 and Onra like this.
  2. What is skew lock?
     
  3. guru

    guru

    And how does Jane Street come up with an options strategy that they don’t understand and don’t believe in? Probably by studying their own loss of efficiency and someone arbing them.


    913262B3-7514-4C37-A1A3-E1A9EE0EBA9E.jpeg
     
  4. newwurldmn

    newwurldmn

    I think this is an embellishment to highlight that it’s unlikely another options person would have figured it out.
     
    poopy likes this.
  5. newwurldmn

    newwurldmn

    My understanding of these cases is that if the traders stole code that would be a violation of non disclosures.

    however if the traders used ideas they learned or developed that would not be enforceable in an NDA
     
  6. poopy

    poopy

    100% they settle. No way it goes to a discovery phase. Nothing to see here. I awoke to like 20 emails about this thread.
     
    guru and newwurldmn like this.
  7. But the code would essentially be the ideas learned or developed, no? So how is there a difference? This is not in my world, so I'm curious to know how these things are parsed.
     
  8. newwurldmn

    newwurldmn

    You consulted with Jane street right?
     
  9. newwurldmn

    newwurldmn

    Code is property. Learnings are not.
     
  10. I understand, but how do you prove it? Can the ideas learned or developed not be coded again? And if code was actually stolen, can it not be modified enough, in style if not in essential content, to distinguish it from the original code? At least enough for plausible deniability? Again, I'm out of my depth here, especially since I nether code nor trade options.
     
    #10     Apr 13, 2024