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.
ISBN-13: 9780307887184
Media Type: Paperback
Publisher: Crown Publishing Group
Publication Date: 06-25-2013
Pages: 384
Product Dimensions: 5.40(w) x 7.84(h) x 0.82(d)
SCOTT PATTERSON is a staff reporter at the Wall Street Journal, covering financial regulation from the nation's capital.
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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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