DarkPools_TheRiseoftheMachineTradersandt.epub

ALSO BY SCOTT PATTERSON THE QUANTS How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It Copyright © 2012 by Scott Patterson All rights reserved. Published in the United States by Crown Business, an imprint of the Crown Publishing Group, a division of Random House, Inc., New York. www.crownpublishing.com CROWN BUSINESS is a trademark and CROWN and the Rising Sun colophon are registered trademarks of Random House, Inc. Library of Congress Cataloging-in-Publication Data Patterson, Scott, 1969–. Dark pools : high-speed traders, AI bandits, and the threat to the global financial system / by Scott Patterson. — 1st ed. p. cm. 1. Electronic trading of securities. 2. Online stockbrokers. I. Title. HG4515.95.P284 2012 332.640973—dc23 2012003096 eISBN: 978-0-307-88719-1 Jacket design by Laura Duffy Jacket photography: (swirl) Design Pics/Ryan Briscall; (numbers) Mark Segal v3.1 For Eleanor Had there been full disclosure of what was being done in furtherance of these schemes, they could not long have survived the fierce light of publicity and criticism. Legal chicaner......