A LSO BY S COTT P ATTERSON 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