The FBI has arrested Todd Newman, who once headed technology trading for Diamondback Capital Management, as part of the government's sweeping probe into insider trading, a person familiar with the matter said on Wednesday.

Newman is in custody, according to the person, who declined to be named because of a lack of authority to speak about the arrest.

(Reporting by Matthew Goldstein, Basil Katz and Jonathan Stempel in New York; and Svea Herbst-Bayliss in Boston, editing by Dave Zimmerman)