Ex-Element Trader Buonauro Ordered to Forfeit Pay

An arbitrator ordered Andrew Buonauro, a former trader at Element Capital Management, to return more than a year’s worth of compensation after finding he disclosed the firm’s confidential execution information to Squarepoint Capital before leaving in 2022.

Arbitrator Holly Weiss found Buonauro breached his employment agreement by sharing proprietary execution details and counterparty information. Weiss determined Element was entitled to recover all compensation paid during the period of misconduct, including bonuses and deferred pay, because the disclosures could have helped Squarepoint replicate Element’s execution systems.

The ruling describes how Buonauro used a personal email account and a personal laptop to transfer material and conceal his actions. The decision highlighted a spreadsheet he shared that identified key trading counterparties and outlined their technical capabilities. Weiss concluded the material exceeded general market knowledge and was intentionally disclosed.

Weiss rejected Element’s claims for lost profits and development costs, finding the hedge fund had not proved those specific damages.

Element asked a New York court to confirm the arbitration award, which made the decision public. The award notes Buonauro left Squarepoint in early 2025 and is now employed at Citadel Securities.

Element declined to comment. Squarepoint, Citadel and Buonauro’s attorney did not respond to requests for comment.

The case involves confidentiality clauses in employment contracts at quantitative trading firms that rely on proprietary execution systems and counterparty data. The arbitrator treated internal details about trading counterparties and technical processes as confidential trade information when disclosed in breach of contractual duties.