Chapter 23 Small Trial

   September 18, 1985, Chicago Mercantile Exchange.

  Just opened in the morning, bidding stage. The traders in the field have not yet adapted to the busy day, and many of them are still yawning, unaware that in Hong Kong, far away in the Eastern Hemisphere, Zhong Shi and Liao Chengde are sitting anxiously in the VIP room of the futures company, waiting for the information.

   With the development of computer networks, these floor traders quickly disappeared. Just like the movie "Wall Street", the era of brokers in dark suits and white shirts in a very noisy trading floor, answering the phone and writing quotations like flying pens will be gone forever. But now, these traders who are as diligent as worker ants are still active in the market.

  Louis is a colleague of Andrew, and he received news from Hong Kong as early as 6:00 in the morning that Andrew entrusted a large order to buy long positions in Japanese Yen, with an amount of about 1.5 million US dollars.

  Louis is a typical white man, tall and strong, full of energy, with dark brown eyes showing undisguised ambition from time to time. In the Chicago Mercantile Exchange, a place where he deals with money all day long, he eagerly learns financial knowledge while fantasizing about how to start his own business.

  He is in charge of yen futures on the exchange. In reality, the exchange rate of the US dollar to the yen has been fluctuating around 250, and the yen is slightly higher in the futures market. The market has a consensus on this, that is, the yen will appreciate sooner or later. This is also based on the strong economic development of RB. conclusion.

  Woke up in his sleep, Louis hurriedly washed his face, then drove to the exchange, and started his day's work. On the way to work, he was still thinking about going to Lake Michigan with his children this weekend, completely unaware that what would happen today would completely change his fate.

  After buying all the funds entrusted by Andrew into long yen contracts, he was taken aback. He carefully checked the newly opened account and found that there was no short contract in it.

   "What the **** is going on? Don't you know risk control?"

   While muttering, he called Andrew in Hong Kong. As soon as the phone rang, it was picked up by the person on the other end. Obviously, the person on the other end had been waiting in front of the phone.

   "How's it going? Dude, did you buy it?"

  Before he could speak, he heard Andrew’s voice from the microphone. The microphone of the old-fashioned telephone was good, and he could hear two voices in it, carefully speaking in Chinese.

   "Hey, buddy, I was just about to ask you! How to buy long yen in full, without even a little risk control measure, don't you know that this is very risky? It's easy to lose money!"

  Louis is a conscientious trader. When he found that the situation was wrong, he wondered if he heard it wrong at six o'clock in the morning. After all, at that time, the human brain was still in a state of confusion.

   "Relax, buddy. This is my client's request, and I also gave him a risk warning in accordance with professional requirements, but a client is always a client, and there is nothing I can do!"

  Andrew on the other end of the phone also had a helpless tone.

   "Well, God bless this guy!" Once Louis heard that it was the result of the client's insistence, he couldn't say anything more. "Andrew, your client is not from RB, is it? Where did you get the news?"

   "Are you kidding me? My client is a millionaire from Hong Kong. As for the news, I haven't heard of it. Do you have it?"

   Andrew was taken aback for a moment, and then realized that this was an old friend's joke. Thinking that the transactions in the morning were not active, he was in the mood to chat with his colleagues in Hong Kong.

   "Of course not...Okay, I hang up, and the market is open!"

  Luis, who was about to say a few more words, stopped talking immediately when he heard the bell, and started a busy day of work.

  …

   Zhong Shi, who was sitting on the sofa, couldn't bear the drowsiness flooding in like a tide, so he was about to lie down on the sofa and fall asleep. On the contrary, Liao Chengde, who was an outsider, walked up and down with an anxious expression on his face, chanting words in his mouth. If Andrew could understand Chinese, he would have heard what he said, which was actually "Great Mercy and Great Mercy Avalokitesvara Blessing..."

  After drinking a cup of espresso, Zhong Shi reluctantly opened his eyes and asked, "How is it, have you placed an order?"

   "Yes, my co-workers have already figured it out!"

  Andrew wiped the sweat from his forehead and said hastily. He has long been used to the time difference between Hong Kong and Chicago, and has developed the habit of sleeping during the day and working at night. However, in order to receive Zhong Shi and others during the day, he had to break his biological clock, and now he is also trying to cheer up.

   It is said that there is not much need to operate now, as long as the news of the weekend comes, Zhongshi will make a lot of money. But in order not to make Liao Chengde and Andrew suspicious, Zhong Shi just pretended to stay in the futures company.

  …

  Wall Street in the United States, Space Capital is located in the office of the Empire State Building in Manhattan. A middle-aged man wearing a red tie is researching in front of the computer.

   "Funds have entered the yen market again, and the amount is not small..."

  The middle-aged man rolled his eyes and screamed: "Miller, go and find out the source of this money!" After that, he pointed to the million-dollar transaction on the screen.

  The person he called was a newcomer who had just entered the job. This kind of person acts as a waiter in a large organization, and usually does rough work such as buying coffee, taking out garbage, and checking information.

  Miller hurriedly put down what he was doing and started making phone calls.

   "Found it, Davis. The funds come from Deep Sea Futures. According to one of the friends, it is a customer from Hong Kong."

  Miller was very efficient and found out the source of the funds in just a few minutes. He was obviously familiar with this kind of thing.

   "Funds from Hong Kong?"

  Davis rubbed his smooth chin, thought for a long time, and then whispered: "Accord with the original plan, and give friends in the Far East some insight!"

   What he's talking about is price manipulation.

Space Capital is the largest short position in the yen futures, holding about one-third of the short positions in the market. Whenever the yen futures are bullish, Space Capital will sell them in a large amount in the market with lightning speed. When it reached the limit, many bulls suffered heavy losses.

   This time, they repeated the old trick, intending to make a fortune in the yen market.

  Every time they do this kind of thing, people in Space Capital feel an inexplicable pleasure. It has to be said that this is an unruly hedge fund that uses its strong capital to make troubles in the futures market. Of course, this is due to the ineffective supervision of the US Securities Regulatory Commission. More importantly, it has not been long since the opening of foreign exchange futures, and many people still hold a wait-and-see attitude towards such a new investment product.

   If the yen futures fell sharply at this time, Zhongshi would definitely suffer heavy losses. He couldn't buy at the close of the market on September 20th, so it was difficult to explain his actions. If he was targeted by the US Securities and Exchange Commission, it would be a big trouble.

  The U.S. Securities and Exchange Commission (SEC) is an independent quasi-judicial agency directly under the U.S. federal government. It is responsible for the supervision and management of securities in the United States. Specifically, it supervises market behaviors that violate securities laws such as inside information and price manipulation.

  Different from general laws, the U.S. securities law implements the "presumption of guilt". Once targeted by the SEC, unless you can prove that you do not know the "insider information", you will be convicted.

  The so-called "presumption of guilt" means that the accused person is found guilty, and the accused person needs to find evidence to prove his innocence. This is very difficult and basically unsolvable.

   What Zhong Shi is worried about is that once he is targeted by the SEC, not only will he spit out all his profits, but he may also be banned from entering the U.S. capital market for life.

  …

During the midday break, a rumor quietly spread in the market. It is said that the finance ministers of Germany, the United Kingdom, France, RB, and the United States will meet this weekend. It is not clear what the specific discussions will be, but anyone with a discerning eye can guess that it must be about several The issue of the exchange rate of the national currency.

  Although it has not been confirmed, it is enough to change the trend of currency futures in the afternoon. Sure enough, as soon as the market opened in the afternoon, all kinds of funds flocked into the long market of Mark, Japanese Yen, British Pound, and Franc, and a large amount of funds entered the corresponding short market of US dollar.

"How is this going?"

  Looking at the rising green data on the screen (foreign capital markets are the opposite of domestic ones, green means rising, red means falling), and the continuous buying orders, Davis couldn't help holding his head and groaning in pain.

  Each price increase represents a huge loss for him, and now he has to make a choice between closing the position and continuing to implement the strategy formulated earlier.

  Davis wailed, thinking of the rumor in the afternoon, he weighed it in his heart, how true or false it was.

  …

   "The futures price of the yen rose sharply during the session, but it was still beaten back by the shorts, and it only rose by five thousandths throughout the day. However, many analysts are optimistic about the market outlook."

Watching the CNBC report on TV, Zhong Shi nodded slightly. He was woken up by the red-eyed Liao Chengde when he slept until midnight. , but the Japanese yen futures remained in a stable situation throughout the day.

   "How's it going, what's the profit today?"

  Zhong Shi rubbed his sleepy eyes, and asked Andrew with a little dissatisfaction.

   "Mr. Zhong, your profit today is about 8%. I wonder what your operation strategy will be tomorrow?"

   Andrew inspected it carefully, and then said to Zhong Shi and Liao Chengde with a happy face.

"Continue to hold it, I won't come tomorrow, and I will show up when I should show up, it's really tiring. By the way, if it falls, there is no need to make a margin call (margin call), just close the position, understand. ?"

   Zhong Shi yawned, looked around with wide eyes, and then said dissatisfiedly: "Where's the coffee?"

After Andrew left with a face full of disbelief, Liao Chengde counted with his fingers for a long time, and exclaimed: "Eight percent of the income, isn't it 800,000?" (Thank you very much for the support of all book friends, if I like this book, please recommend and collect more, I will be very grateful)

  (end of this chapter)