WASHINGTON (MarketWatch) — Russia sought to use spies to get more information about high-frequency trading in a potential bid to destabilize the market, according to a court document released by the U.S. government on Monday.
The U.S. government on Monday made one arrest and charged two other diplomats with spying on behalf of Russia.
But one of the topics Russia wanted to know more about is a topic the U.S. government is also struggling to comprehend: high-frequency trading. Russia apparently wanted to use such trading to destabilize the market.
According to the FBI, a banker, Evgency Buryakov, was told to tell a Russian state-owned news outlet to get information on three specific questions. This was a conversation he had with the Russian trade representative, Igor Sporyshev, as translated by the FBI:
Buryakov: How they are used, the mechanisms of use for destabilization of the markets.
Sporyshev: Mechanism — of — use — for —market — stabilization in modern conditions.
Buryakov: For destabilization.
High-frequency trading has been blamed by some for adding instability to markets.
In the book “Flash Boys,” author Michael Lewis says a surprisingly large number of the people pulled in by the big Wall Street banks to build the technology for high-frequency trading were Russians.
One, former Goldman Sachs programmer Sergey Aleynikov, was convicted of stealing trade secrets, before his conviction was overturned.
Full article: Russia tried to learn how to use high-speed trading to rock market, U.S. says (Market Watch)