The Son of Finance of the Great Age

  Chapter 677 The most short squeeze in history (4)

   “How much are we short in total?”

   Alan Howard took off his windbreaker, and hurriedly walked towards the meeting room surrounded by traders, asking as he walked.

   "1 billion euros, 1.25% of the shares, close to 5 million shares."

James Whitehead immediately replied, "Things are very tricky. According to the known information so far, there are at most 5.8% of the outstanding shares left in the market. Wednesday is the delivery day for securities lending. If you can't get enough shares on Monday and Tuesday , we're in big trouble."

   "What about the floating profit in our account?" Alan Howard stopped, and his face immediately became extremely ugly. "If we can't close all positions, what is the most serious consequence for us?"

"If you breach the contract, in addition to losing a large sum of money, I'm afraid you will be expelled from the German market." James Whitehead hastily stopped, even if he almost bumped into his boss, his expression became equally ugly at this moment Incomparably, "At present, the floating profit in our account is close to 200 million euros, but basically we don't need to consider this aspect. When the market opens on Monday, I believe that the stock price of Volkswagen Group will soon rise to 200 euros, and it may even exceed this figure at the opening. Ying could be swallowed up in an instant."

   "What about the broker?" Alan Howard took a deep breath and couldn't help shaking his head, "I'm afraid that Fuying is completely over. Now we'll see how the broker reacts."

"So far, they have not called for the deposit, but according to our 2 times leverage, I believe that the call for the deposit call will come soon tomorrow. But they have no good way, and they may not be able to force our position , because it is impossible for them to buy shares." James Whitehead said a little bit dumbfounded. This time, even brokers were involved.

"Prepare a sum of funds immediately, and place a buy order when the market opens tomorrow." Alan Howard has regained his composure. "In addition, the brokers should also actively communicate with each other, and prepare to pay a deposit if necessary. I really didn't expect that , They actually came up with such a move, it’s more than one squeeze!"

"According to the wisdom of the Porsche family, it is impossible for them to come up with such a shrewd scheme!" Another trader Adrian Hilton said, "I suspect that the whole thing is related to the Tianyu Fund that appeared on the scene two days ago Zhong Shi, and only he can plan such a large-scale multi-squeeze case.”

   "But didn't he deny it in public?" James Whitehead couldn't help frowning, "It is impossible for a person at his level to lie in public, and the consequences of doing so are very serious."

"You ignored a little condition!" Adrian Hilton pursed his lips, with a disapproving expression, "What Zhong Shi said was that the Tianyu Fund had nothing to do with the Porsche acquisition. But this does not mean that he is personally related to the whole matter Nothing to do. You know, even a little bit of the mega-rich guy’s own money is enough to plan the whole thing. He’s playing with words, and that’s how the whole thing should be.”

   "My God, this is too scary..." James Whitehead thought about it carefully, and what Zhong Shi said publicly was true, and only then did he realize the depth of the other party's scheming.

"According to your analysis, I think of someone!" Alan Howard couldn't help taking a breath, "Gentlemen, have you forgotten Soros? Think about it, the hedging situation in the whole of Europe The fund industry has never had a big grudge with Tianyu Fund, but only Quantum Fund and Tianyu Fund have had a deep hatred, so it is very likely that they are targeting Quantum Fund this time.”

"Is this a bit of a conspiracy theory?" This statement is obviously far-fetched, Adrian Hilton and James Whitehead both have a look of obvious disbelief, "To collect such a large number of options, I believe that Zhongshi is It will be done overnight. But it has only been a little over half a month since Soros appeared, so it seems that the time cannot be justified."

"God knows what's going on, I'm just talking about a possibility!" Alan Howard tilted his head and thought for a while, and suddenly realized a problem, "By the way, what is the short-selling scale of the Quantum Fund? Will they Will there be a breach of contract?"

   "It is indeed possible!"

   Almost at the same time, the eyes of Adrian Hilton and James Whitehead lit up. According to their understanding of Soros, the hedge fund tycoon will either not make a move, or he will go all out if he wants to make a move. Especially in this situation where almost an open signal is sent to the entire market, Soros will not hold back. In this case, Quantum Fund may be facing a much more dangerous situation than them.

   It's just that this kind of schadenfreude didn't last long, and the three of them didn't continue. They knew very well that even if Blevin Howard Asset Management was able to close their positions smoothly this time, the final loss would be very heavy.

  What they didn't know was that, even though they knew they were going to lose a lot, they were shocked when the numbers came out two days later.

  …

   "Give me a call from the president of the Frankfurt Exchange!" On the private plane, Soros hurriedly ordered his assistant as soon as he sat down.

"Sorry, sir, I can't connect to the phone at the moment." Seeing that Soros was in a panic, the blond female assistant could only bite the bullet and persuade, "But after the plane takes off smoothly, I will answer it for you as soon as possible." On the phone."

"Um…"

  Although he was very anxious, Soros could only do so. He half-lyed on the seat, closed his eyes and rested his mind, but he couldn't calm down for a moment.

   If it was Murphy's Law, the worst happened despite much reluctance, and the Porsche family announced their position, leaving the market with only 5.8% of outstanding shares. For Soros, a big short with a short-selling quota of up to 5%, this means that they have to buy most of the tradable shares in the market to smoothly close their positions, and all of this is obviously impossible.

   Going to breach the contract!

  Soros immediately realized the seriousness of the situation. You must know that if the contract is breached, the Quantum Fund is basically equivalent to smashing its own signboard. Of course, if there is a default, it also means that the Frankfurt Exchange has smashed its own signboard.

  In 1987, the futures contracts of the Hong Kong Stock Exchange could not be delivered, so that the chairman of the Hong Kong Stock Exchange was arrested after the anti-corruption storm, which also allowed the Hong Kong Stock Exchange to establish a stabilization fund. In 1995, the Singapore Exchange was unable to fulfill the contract, which not only caused the collapse of Barings Bank, but also handed over the largest market of the Nikkei to the Osaka Exchange.

   All of this shows that the breach of contract is not only a huge challenge to investors, but also makes the exchange face a difficult situation. So Soros believes that the president of the Frankfurt Stock Exchange at this moment should be more anxious than he, a big short.

   "Buzz buzz..."

  The turbine engine sounded, the plane quickly started, soared into the sky, and soon disappeared into the blue sky.

   "Mr. Soros, your call is connected!"

Before he knew it, Soros fell asleep. When the sweet-looking assistant delivered the satellite phone to him, he was still a little confused, but he woke up the next moment, answered the phone immediately, and said respectfully: " Is it Mr. Kurt William Cole? Hello, I am George Soros, George Soros of Quantum Fund."

   "I know who you are." The other party interrupted Soros' self-introduction unceremoniously, "Hello, Mr. Soros. What can I do?"

  Soros was stunned for a moment, he didn't expect that the other party didn't even bother to say a word of pleasantries, so he directly asked why he came. He ignored the time difference. Anyone who is woken up by the phone in the middle of the night will feel unhappy, and it is normal to be a little emotional.

Right now, Soros didn’t have time to worry about these things at all, so he hurriedly said, “That’s right, Mr. Cole, our Quantum Fund is now one of the biggest short sellers of the Volkswagen Group, but we are very likely to be unable to close our position after being squeezed by the Porsche Group.” , a breach of contract may occur at that time.”

   "What? Default?"

The other party's mood finally returned to normal, but he still said dissatisfiedly, "Isn't there two more days? You just buy as much as you can in the market. What? Are you afraid of losing money? Didn't you think about it when you were short?" ? George Soros, very famous, but you called me, are you planning to let me open the back door? This is obviously impossible."

"No, no, no." Soros was as respectful as a kitten at this time, without the demeanor of a hedge fund at all, "Of course we don't care about losses. The short-selling amount is a bit large, and it is more troublesome to close the position. Of course, we will definitely go all out to buy stocks in the market to close the position tomorrow and the day after tomorrow.”

   "Trouble? What trouble?"

  The other party asked strangely, "Mr. Soros, can you tell me how many shares you have shorted?"

"This... this..." Soros twitched for a long time, and finally said reluctantly, "We have shorted about 4 billion euros in the shares of Volkswagen Group, accounting for about 5% of the total share capital. And now the total The circulating share is only 5.8%, and I am afraid that even if Quantum Fund goes all out, we will not be able to close positions on time.”

   "What? You actually shorted so much?"

  Kurt William Cole, the president of the Frankfurt Stock Exchange, took a breath and realized the seriousness of the situation, "God, how could you get so many stocks?"

"This..." Soros stammered again, but the current situation was beyond his control. After a long struggle between heaven and man, he decided to tell the whole thing, "I borrowed the stock from the executives of the Volkswagen Group. This One point is recorded in the exchange, and there is no illegal element.”

  He did not disclose which executive it was, and the other party had a tacit understanding and did not ask further questions, which made Soros breathe a sigh of relief.

   "We are also studying the specific development of this matter, but we have no way to express our position until the moment of the final breach of contract."

After being silent for a long while, Kurt sighed and comforted the other party, "What you need to do now is to buy as many shares of Volkswagen Group as possible from the market within these two trading days. When it comes to the final delivery, if In the event of a breach of contract, the exchange will come forward to negotiate the matter. Of course, the exchange will not sit idly by. In any case, the position of the Frankfurt Exchange is unshakable."

  As the president of an exchange, Kurt William Cole naturally knows how much a breach of contract will hit an exchange's business, so in the end, even if an administrative order is issued, he must avoid the occurrence of a breach of contract.

   "This is naturally the best." Soros was overjoyed and praised each other again and again. However, he quickly changed the topic and brought the topic to another direction, "Mr. Cole, I believe you know better than me that this is a typical and vile multiple short squeeze incident. Let's not talk about whether it is manipulating the market or not." , Just this kind of behavior of not disclosing the option contract alone is a serious deception. I think the Frankfurt Exchange should act, act immediately, and severely crack down on this behavior!"

   "I won't bother Mr. Soros about this issue!" Kurt William Cole laughed, "If there is nothing else, I'll hang up first."

   After finishing speaking, regardless of Soros' call on the other end, he hung up the phone with a "bang".

   Thanks to book friends Xiaoqi Civilization Miracle, everbondjack, seanju1, Xiao Xiaoquan, Chen Zhiao, Hu Lingfeng and other book friends who voted monthly! Also by the way, thanks to my friend Hiroshi Hanjiang for his continuous support! Although there are many difficulties in writing books during the holidays, the author will try his best to persevere and strive to live up to the enthusiasm of so many book friends for this book. Once again, I hope you all have a happy holiday~www.readwn.com~ Enjoy reading!

  (end of this chapter)