For some, valuable trade codes well worth stealing

"Power alters the basic neurological processes in the brain and inhibits those parts of the brain that would allow a person to show restraint," he said. "It allows them to systematically ignore the consequences of their actions."

Galinsky referred to past examples of traders gone wild to demonstrate the effect power can have. For example, futures trader Nick Leeson, who lost $1.4 billion and brought down Barings Plc, one of Britain's oldest banks, in early 1995. Or Jerome Kerviel, whose unauthorized trades caused a loss of 4.9 billion euros ($6.87 billion) at French bank Societe Generale (SOGN.PA).

The main difference in the latest case is that Aleynikov was not a trader, a fact that Robert Friedman, a partner in the litigation group at law firm Kelley Drye & Warren LLP said would make additional regulation redundant.

"Regulation is more geared toward transparency in the markets rather than preventing outright theft," he said. "It is very difficult to prevent theft before it happens, but it appears Goldman Sachs had controls in place that worked."

Others see the episode as a cautionary note, not just for Goldman, but the rest of the market as well.

"If anyone has an algorithm that's working well, it's very valuable," said Iqbal Brainch, chief marketing officer at futures brokerage firm Advantage Futures -- whose website touts that it is "millisecond to none."

"This case speaks to the importance of security, the importance of not letting any of that information out -- and the importance of putting steps in place to protect your algorithms."

(Reporting by Nick Carey; additional reporting by Doris Frankel and Kyle Peterson; editing by Andre Grenon)