Rebirth 76: Industrial Internet Empire

The Chicago Board of Trade is even more devastated, including short sellers in commodities such as oil, rubber, and iron ore. Almost all of them are in dire straits...

The worst thing is that investors who hold long orders in the Dow Jones and Nasdaq index futures contracts are frantically trying to close their positions and stop losses, but they can no longer see a single long order on the market.

In a private club on Wall Street in New York City, under the emergency convocation of James Gorman, Wall Street talkmakers from Citigroup, Goldman Sachs, Wells Fargo, HSBC and other securities giants gathered here.

James Gorman said straight to the point: "Since the attack on the Twin Towers of the World Trade Center, the U.S. stock market has been experiencing an unprecedented crisis. For most brokerages, it is nothing short of a catastrophe! We invite everyone here to discuss Here are some countermeasures..."

"If the stock market continues to plummet unilaterally like this, I believe that everyone here will suffer heavy losses. We are all grasshoppers on a rope now. Especially at this time, we should work together to find ways to save ourselves, instead of trying to step on others. Shoulders to get out of the mire!" echoed Wells Fargo's Jonathan Weiss.

"It is not easy to get through this crisis safely! Market sentiment has been completely destroyed by the terrorist attacks. Not to mention the losses in the stocks we hold, it is just the account liquidation using financial leverage. If we cannot Closing the position and stopping the loss is enough to put us in trouble!" Abby Cohen of Goldman Sachs Investment said worriedly.

"Abby, don't think about closing positions and stopping losses. The Dow Jones fell close to 700 points, but the trading volume is pitifully low. There are no buying orders in the market at all. If everyone is like you at Goldman Sachs and just think about closing positions and stopping losses, Everyone has to finish playing!" Jonathan Weiss said angrily.

"You can't close positions and stop losses, and you can't call margins from customers. Tell me, how can you save yourself?" Abby Cohen said without giving up.

"What Abby said is not unreasonable. Looking at the momentum, calling back margins from investors who are on the verge of liquidation will have little effect. No one will throw money in again. In addition to finding ways to close positions and stop losses, we can also What should we do? Are we allowed to invest real money into the market to protect the market?"

"Enter the market to protect the market? US$6000 billion in market value has evaporated in one day, and all our wealth and lives have been thrown into it. I'm afraid we can't even fill this hole!" Jonathan Weiss said.

"This won't work, that won't work either! Mr. Jonathan! You can suggest a feasible way!"

"It's not impossible to enter the market to protect the market, but there must be a prerequisite. We can reach some kind of tacit understanding with the short side!" James Gorman said thoughtfully.

"Achieve some kind of tacit understanding with the short side? James, did I hear you correctly? The Dow Jones plummeted 684 points in one day. In the face of such huge interests, which short seller would reach a tacit understanding with you?" Abby Cohen said with a look of disbelief.

"In addition to stocks and stock index futures, the long positions everyone holds should also include a lot of CFDs, right?" James Gorman asked.

Everyone nodded in unison.

"As far as I know, Zhiyuan Group and Qianhai Capital Company are the biggest beneficiaries of this attack! They are not only the largest short sellers in the stock index futures market, but also one of the bookmakers who sell short CFDs. If we can communicate with them It is entirely possible to reach a certain tacit understanding and reverse the unfavorable situation!" James Gorman continued.

"Isn't this impossible? Based on my understanding of Yang Mo, this person is very powerful!" Abby Cohen said.

"Because I have signed a confidentiality agreement, I cannot confirm the CFD in the hands of everyone here. Is the bookmaker behind it from the Zhiyuan Group or the Qianhai Department? If it happens to be them, we will have a bargaining chip!" James Gorman continued said.

"You mean to take advantage of the force majeure exemption clause in the CFD?" Jonathan Weiss was the first to react and said with excitement.

James Gorman nodded and said: "Yes! Morgan Stanley's legal department has carefully studied that although the attack on the Twin Towers of the World Trade Center did not completely trigger the force majeure exemption clause, it is a bit difficult to force the contract to be terminated, but as long as We are willing to use our own resources to collectively put pressure on the Federal Securities and Exchange Commission, and there should be no problem in reaching an extension of the contract!"

“In the long bear market, another black swan event such as a terrorist attack occurred. Investor confidence has collapsed and the downward channel has been completely opened. With the strength of Zhiyuan Group and Qianhai related companies, even if the contract for difference is extended, I am afraid it will not be possible. There will be great results!" Abby Cohen said worriedly.

"Yeah! I wonder what kind of bad luck Zhiyuan Group and Qianhai Asset Management got? Ever since they became bookmakers of short-selling CFDs, the fundamentals of the stock market, which had stabilized its decline, have become extremely weak, and liquidity has Problems such as traps and accounting fraud continue to emerge, and now there is a black swan event like a terrorist attack! Being forced to become their opponent is really a very bad thing!" Jonathan Weiss nodded and smiled bitterly.

"The financial market is only driven by profit, and there are no eternal enemies! Forcibly canceling the CFD will cause us to lose a large amount of commissions, and the benefits will be those investors who have already liquidated their positions. And if we delay the performance of the contract, we do not have much chance of winning. , these are not the results we want, and they are also not the results Zhiyuan Group and Qianhai Department want!" James Gorman explained patiently.

"Use forced termination and postponement of performance as threats to reach a favorable settlement plan with the Qianhai Department?" Abby Cohen blurted out.

"Yes, this may be our only way out of trouble! If done correctly, we can even become the winner in this black swan event..." James Gorman nodded and said.

"Mr. Gorman, tell me your detailed plan!" Jonathan also showed strong interest.

"To tell you the truth, Morgan Stanley has been putting pressure on Zhiyuan Group through various channels since the day the World Trade Center Twin Towers were attacked! But Yang Mo remained unmoved and refused to meet for various reasons until this afternoon. , finally agreed to my request for a meeting. We will meet after the market closes at noon the day after tomorrow. I have called you here today because I hope you can put pressure on the bookmakers behind the CFD contracts at the same time and try to persuade them to reach a consensus settlement plan! " James Gorman continued.

"What a coincidence? Li Heping also agreed to our meeting request, and the time was after the market closed at noon on the 19th..." Abby Cohen said in surprise.