(Bloomberg) -- The two former Jane Street Group traders accused of stealing an Indian options-trading strategy for Millennium Management countersued t

Ex-Jane Street Traders Cite Pay Upset in Secrets Countersuit

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2024-05-15 23:30:05

(Bloomberg) -- The two former Jane Street Group traders accused of stealing an Indian options-trading strategy for Millennium Management countersued their old firm, saying they left because they were disappointed in their 2023 pay packages.

Douglas Schadewald and Daniel Spottiswood said in counterclaims filed Tuesday in Manhattan federal court that they led the growth of Indian options trading at Jane Street from a “relatively small operation” at the beginning of the year to a highly profitable business by the end of 2023.

The pair said it was the most successful year of their careers, but that they were “disappointed with Jane Street’s compensation decisions” and “felt that they were not given a clear path to advancement within Jane Street and that their contributions to the firm were being undervalued.”

Jane Street sued the two men and Izzy Englander’s hedge fund group last month, saying they stole an “immensely profitable” proprietary strategy. It was later revealed in a court hearing that the strategy related to options trading in India. Jane Street initially sought an order blocking the defendants from using the strategy, but US District Judge Paul Engelmayer denied that request. It’s now seeking damages.