Books and papers about market making - recommendations, discussion

[Maggette]

I don't want hijack the thread, but I did not get beyond the first chapter of Dark Pools.



The book handles a lot of topics that I do not have a deep understanding of nor any experience with. Hence I need some pointers that the stuff is credible.



But the first chapter on Bodek made my alarm bells ring. There is described how he and his team doesn't understand the behaviour of their systems any more, but he gives a team a pep-talk before markets start that they could pull it off and whatever (however they gonan do it while the system is live)....Bodek might be a tool (don't know), but I guess (or hope) nobody runs his machines when things go downhill for several days by order of magnitude you didn't expect or explain? especially with a whole team of professionals on the team.



It's not that it never happened to me, that I din't understand the behaviour of software systems or models. But I switch that shit off, when I can. And I don't know any sensible reason in Bodeks scenario why he should keep bleeding (prop shop) and stall trading.



That makes me question the books the credibility a lot. Or am I missing something?

[nikol]

Dark pools is written with warm heart, admiration and curiosity about the industry. It transmitted a number of ideas into my brain.



Flash boys is full of speculation spiced with fat layer of paranoia. I almost vomited.