Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market

Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market

by Scott Patterson


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A news-breaking account of the global stock market's subterranean battles, Dark Pools portrays the rise of the "bots"—artificially intelligent systems that execute trades in milliseconds and use the cover of darkness to out-maneuver the humans who've created them.

In the beginning was Josh Levine, an idealistic programming genius who dreamed of wresting control of the market from the big exchanges that, again and again, gave the giant institutions an advantage over the little guy. Levine created a computerized trading hub named Island where small traders swapped stocks, and over time his invention morphed into a global electronic stock market that sent trillions in capital through a vast jungle of fiber-optic cables.  

By then, the market that Levine had sought to fix had turned upside down, birthing secretive exchanges called dark pools and a new species of trading machines that could think, and that seemed, ominously, to be slipping the control of their human masters.

Dark Pools is the fascinating story of how global markets have been hijacked by trading robots—many so self-directed that humans can't predict what they'll do next.

Product Details

ISBN-13: 9780307887184
Publisher: The Crown Publishing Group
Publication date: 06/25/2013
Edition description: Reprint
Pages: 384
Sales rank: 443,971
Product dimensions: 5.40(w) x 7.84(h) x 0.82(d)

About the Author

SCOTT PATTERSON is a staff reporter at the Wall Street Journal, covering financial regulation from the nation's capital.

Read an Excerpt

Chapter One

Excerpted from "Dark Pools"
by .
Copyright © 2013 Scott Patterson.
Excerpted by permission of The Crown Publishing Group.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

Table of Contents

Prologue: Light Pool 1

Part I Machines v Machines

1 Trading Machines 13

2 The Size Game 24

3 Algo Wars 40

4 0+ 47

Part II Birth of the Machine

5 Bandits 67

6 The Watcher 84

7 Monster Key 93

8 The Island 108

9 The Green Machine 125

10 Archipelago 137

11 Everyone Cares 146

12 Palace Coup 161

13 Bad Pennies 170

14 Dumb Money 178

15 Trade Bots 188

16 Crazy Numbers 209

17 "I Do Not Want To Be A Famous Person" 224

Part III Triumph of the Machine

18 The Beast 233

19 The Platform 246

20 Panic Ticks 260

21 Very Dangerous 272

Part IV Future of the Machine

22 A Rigged Game 281

23 The Big Data 297

24 Advanced Chess 311

25 Star 322

Acknowledgments 337

Notes 339

Index 347

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Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market 4.5 out of 5 based on 0 ratings. 13 reviews.
Anonymous More than 1 year ago
06/26/2014, Friday-9:28 am Readers, if you read this book you will find that it is complex and needfully so. This subject describes the death of the floor exchange and the human elements of it. Electronics trading with other electronics trading at speeds in microseconds? It may make the market crash of October, 1987 seem very mild. It will work until something "goes wrong"! Then...God Help Us! A must-read for those who want to know about this market! russ
oscarnotwilde More than 1 year ago
The second half of this book was a great explanation of how the US equity trading marketplace came to be the beast it is today. The first half is a bit light.
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Anonymous More than 1 year ago
I u want se.x go to bugs res7
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Lol I am too! Its Hunger Games based.
Anonymous More than 1 year ago
Well, theyre kinda like a species and they live alot like we do, just in secret islands in the sky. They have a really awesome fighting force.
Anonymous More than 1 year ago
Anonymous More than 1 year ago
This book is truly an "eye opener!" I had very lirtle idea that such a high speed "rollercoaster" was in motion underlying our economy! If you're interested in the forces that drive our economy this is a great book to read.
Anonymous More than 1 year ago
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Anonymous More than 1 year ago
WHos a cheater