At Two Sigma, we view the safeguarding of our intellectual property as vital to the continued success of the firm. We are able to dedicate ourselves to creating innovative strategies to better serve our clients because we are confident in the cybersecurity protocols and employee safeguards we have implemented to protect our work. Our algorithms and models are our trade secrets—literally, the hard-won, analytical insights by which we make investment and trading decisions.
However, regulators are increasingly seeking access to this sensitive intellectual property in routine contexts. Because of this concern, we are focused on working with our regulators and policymakers in Washington and across the globe to protect our intellectual property. As part of this effort, the firm recently submitted a comment letter focused on the protection of our intellectual property to the Commodity Futures Trading Commission in response to the proposed Regulation Automated Trading and its plan for a source code repository. In the comment letter (link below), we explain in detail why these protections matter and how regulators can help keep this vital information secure.