Digital Kingdom

The development of the matter did not exceed everyone's expectations.

Fear became reality.

By July 8th, as soon as the London Stock Exchange opened, all funds began to snatch ARM's stock.

The London market broke out in the largest wave of short-selling in history.

Any institution that shorts ARM does not want to be left in the 10% that is about to be unrecovered.

In order to preemptively liquidate their positions, the shorts can only rush for stocks, even if the stock price is several times higher than when it was shorted, they will not hesitate to cover up.

The intensiveness of funds and the frequency of making moves have created the common tragic situation of "sweeping the door and stepping on each other" in the stock market.

However, unlike the past, this kind of "stomping" is not to smash the stock price down, but to the top.

180 pounds, 200 pounds, 300 pounds...

Thanks to the madness of the bears, ARM’s stock price soared by 170% that day.

Everyone in the Stellar Group guessed the beginning, but did not guess the ending.

As of the day's close, ARM's share price has risen from 180 pounds in the previous trading day to 500 pounds, more than doubled.

Stellar's $1 billion reserve fund was all consumed, and the mission was not completed, so we could only wait for the next working day to continue the competition.

The tragedy of the stock market also frightened Chu Guowei and Chen Huawen, and even Su Peng was shocked. Although he had already predicted it, he still underestimated the market and humanity.

Watching the stock price fly like a rocket and the adrenaline is secreted at a rapid rate, this kind of squeeze, if you do not experience it yourself, you can't feel the madness and despair.

UBS Warburg (USB) was even more miserable. All of the 3 billion pounds were invested in the market, and only two-thirds of the orders were recovered. If it weren't for people to stop, Eric would have the thought of jumping off the building.

The performance of the stock market today completely shattered his last illusion. Everyone is vying for 20% of the list, and there is no reason at all.

Seeing such a crazy situation, he realized how ridiculous yesterday's delusion to unite all funds to stabilize the stock price. In this case, everything goes against the trend, like a man with a man's arm, which is ridiculous.

Even before the London Stock Exchange was closed, UBS Warburg had already notified Eric by phone to dismiss all his duties and wait for others to take over, becoming the first victim of this long-short battle.

Eric had long anticipated this situation. The loss is unique in USB history, and someone must be responsible for it.

He is just a pawn, with a bigger black pot behind him.

To be honest, Eric felt a little relaxed when he received the notice, after all, this was only the first day.

Since the London market cannot be shorted without coupons, once the stock price is higher than the cost of the short side, and the short side has no additional coupons in his hands, he can only cover the short order and leave the market with a claim.

In this extreme short-squeeze state, the number of tradable stocks is less than the total number of short orders, and the stock price can soar to infinitely high.

Because after placing a short order, there is only the obligation to perform delivery. Once it is rolled, even if the stock price is high, it will have to buy shares at a loss and pay it back in full.

Therefore, the London market tomorrow will be even more terrifying.

Not facing this scene is also a relief for Eric.

Sure enough, after the hardships of Saturday and Sunday, on Monday, the London Stock Exchange opened, and ARM's stock price rose sharply, and finally reached a high of 1,125 pounds.

It has risen seven times in two days. On this day, ARM's total market value is close to 230 billion pounds, making it the highest listed company in the history of the UK.

Countless fund managers were wailing, and some even jumped down from a tall building, adding a touch of blood to the crown of victory.

When Eric saw the performance of the stock market the next day, a chill rose from the soles of his feet. He immediately contacted the regulator and asked to intervene in the storm.

You know, this extreme short squeeze will cause the entire market to shut down, because the market index is extremely distorted by the impact of ARM's stock price (just imagine if the PetroChina soared 5 times in two days, what the Shanghai Composite Index would be like).

After a little consideration, the British government decided to go forward and mediate the matter.

As the host of this turmoil, it has this right and this obligation to avoid a market crash.

So after two days of madness, trading was suspended on the London Stock Exchange on Tuesday.

When Zhao Ziming received the invitation of the British government, he was going to the brain-computer company to inspect the new project. After a little consideration, he notified Xu Tianrui by phone to transfer him from Barcelona to London, and negotiated with the institutions that could not liquidate the position on behalf of the Digital Group.

The disturbance from the outside world did not affect Zhao Ziming. Although he has 80% of ARM's shares, the current valuation exceeds one trillion yuan, for him, it does not make much sense.

On the one hand, trillion valuations are just a bubble. As long as 10% of the shares are released, ARM's stock price will quickly fall to its original level;

On the other hand, the important thing for ARM is not how much it is worth, but its assets. For the sake of industrial layout, no matter how high the value is, he will not sell it.

"How will the British government handle this?"

Shen Yiyi asked, she heard the call just now,

"There is only one way", Zhao Ziming leaned on the table, his tone was flat.

The space inside the car is huge, like a small conference room with two people in it, not even crowded.

"What?" Shen Yiyi was curious,

As the long-air battle ended, and the Digital Group won a big victory, she also felt proud.

Zhao Ziming: "Ultimately, we will only take the initiative to release 10% of the stocks to liquidate short positions, so that ARM stock trading will return to normal."

Shen Yiyi: "Isn't this bullying? Why didn't the British regulators come forward when so many funds were short."

Zhao Ziming smiled. He knew that Shen Yiyi was talking angry, and he would not sit back and let the market go crazy if he changed to any country.

The only difference is when to shoot.

This man-made crisis can be easily quelled as long as the government is determined.

Shen Yiyi: "How do you calculate the stock price?"

Zhao Ziming: "Naturally, we have to calculate according to the current market price. It would be nice to give them a chance to close their positions. Give some blood and buy a lesson."

Release to release, the settlement price is naturally impossible to discount, all must be settled at the current market price, which is the price of 1,125 pounds.

Shen Yiyi: "Then Vice President Xu went to London..."

Zhao Ziming: "Our conditions were not given in vain. He changed a promise and the British government would not intervene in this merger."

Shen Yiyi: "Oh, will they agree?"

Zhao Ziming: "The Brexit turmoil is intensifying. They are in desperation. How can they be in the mood to intervene in this matter? Everyone knows in their hearts that the United Kingdom can no longer support the glory of ARM. If it is not sold to us, it will be sold to others. Now The only problem is politics."

Shen Yiyi nodded, the biggest obstacle is still the US government.

After this "long-air war", the British government's obstacles have almost been cleared away, and the final result will not be determined until the US general election is finalized.

Of course, whether it is Hillary Clinton coming to power or Trump winning, the possibility of the two supporting the merger is very small, and preparations must be made in advance.

Zhao Ziming: "We just borrowed information asymmetry this time and caught the other side by surprise. If the short fund is more careful, it is still unclear who will kill you?"

Why did so many financial veterans lose to outsiders together?

On the surface, the key to success lies in the digital group's use of option trading rules.

Some people may wonder why all hedge fund managers involved in shorting ARM, without exception, ignore the deadly trading rule?

Zhao Ziming took a sip of water and continued: "In all fairness, this can't be all to blame for the lack of eyesight of those fund managers, because that rule has never been used since the option trading."

Shen Yiyi smiled, if it weren't for an example, everyone would still not think of the use of this rule.

Zhao Ziming: "Liang Junchao is an individual talent."

At the previous meeting, it was agreed that the use of “equity swaps” to secretly acquire the shares of the “ARM” company, although it may be a method, is relatively risky and may easily cause litigation backlash by the other party in practice.

If there is no other choice, the Digital Group will bite the bullet and go on. However, Liang Junchao, who is in charge of this matter, is unwilling to let it go.

Although the "equity swap" itself was proposed by him, for an elite, constantly challenging and surpassing oneself is its inherent essence. After a lot of thoughts, he found a way out of desperation and discovered this. Long forgotten rules.

Although the two are somewhat similar, there are substantial differences.

One is the edge ball. "Equity swaps" were invented specifically to avoid the obligation of "information disclosure" and carry risks.

The other is permitted by the law, and the option price is paid in full.

Shen Yiyi took the words: "Yes, people who can think of it are so deep in their minds."

Most of those engaged in option transactions are institutions, that is, hedge funds who play hedges. For them, their positions are generally large and they should be enlarged as much as possible. There is no reason not to use financing leverage. What?

One hundred million with one billion is a routine operation, and no one buys options in full, so this rule has never been activated since it was established. It is completely useless and has long been forgotten.

Zhao Ziming stunned, "Deep thoughts", not like a word of praise, but he didn't say much.

Sometimes women's minds are too emotional.

Although Liang Junchao is a bit radical, he doesn't have a strong concept of superiority and inferiority. If he has an idea, he will not find his superiors and report directly to him.

But to dig out and make use of this dusty rules, it is impossible to do without extraordinary eyesight and keen insight. On this alone, Zhao Ziming will give maximum tolerance.

Relying on talent and being proud of things is the inherent common problem of talents. Not to mention that Liang Junchao is respectful in front of him. Even if his eyes are above the top, he will not care. As long as it can bring benefits, everything else is trivial.

Shen Yiyi didn't care when he saw the man, so he didn't say much, and the time for dealing with him would be long.

She learned from other sources that Liang Junchao deliberately showed a talented and arrogant personality, and his heart was deep, just to cater to the boss's preferences. Although Zhao Ziming is strict with senior executives, he has always loved technical professionals.

Liang Junchao did what he liked, and as expected, he left a deep impression on the leaders in one fell swoop.

This is called Jian Zai Di Xin. As the influence of artificial intelligence begins to ferment, the Digital Group now has more than 2,000 formal employees. There are no five hundred but three hundred at the level of Liang Junchao.

The higher you go, the fewer seats you have. How can a person who has no impression in the mind of a leader be promoted.

Bad impressions are also impressions, and besides relying on talents, isn’t it synonymous with talent?

Without talent, how arrogant!

Zhao Ziming: "This merger is over, I am going to use 10% of the benefits to reward the merits, you first prepare the list in advance."

Shen Yiyi stayed for a while and didn't say much.

She knows that men have always been more generous in money, but she did not expect such a big deal. According to the current price, releasing 10% of the ARM company shares in her hand can make more than tens of billions of dollars in profits.

Of course, the ultimate benefit is not so calculated, but 10% is still not a small amount.

Zhao Ziming: "Pay attention to confidentiality, so that no one will be jealous. In this long-short duel, there are too many losers. We must also be careful of someone jumping over the wall in a hurry. You also know that the practice in the financial circle is to "win bragging, and lose reason." Public opinion preparations should prevent people from being splashed with dirty water and lead in the direction of conspiracy theories."

Shen Yiyi nodded,

When the enemy is wailing, it is best not to play the crown to celebrate. The news she learned, because of this loss, did not reach the final outcome, two fund managers have committed suicide by jumping off the building.Many hedge funds went bankrupt after this transaction and closed their doors.

At this moment, everything should be low-key!

Zhao Ziming: "There is another point. Although we won this time, we had to do it. The financial market risk was too great. If not necessary, our group should not participate in long-air speculation in the future. This must be implemented as a company strategy."

He also just got news that the billionaire, the Duke of West, who is ranked fifth on the British Fortune list and ranked 90th on the Forbes rich list, has made a huge loss in shorting the ARM company. It was already on the morning of July 9, 2016. Suicide by jumping off the bridge.

It is said that this old fund manager, who is over 60 years old, knocked out with tears to make up for the loss. This is the biggest defeat he has encountered in his life, and there is no possibility of turning over again.

The huge loss could not be made up, and I finally chose to leave.

This is also one of the reasons that prompted Zhao Ziming to accept the reconciliation. Since he can't take advantage of the victory and catch up when he sees it, it is the wisest choice. After all, he will have to deal with the British market in the future.

Although Shen Yiyi didn't know why the leader felt, he was happy to see the decision. Although this long and short battle seemed ordinary, it was like a steel wire in a cliff, and if he didn't pay attention to it, he was crushed.

She is afraid that her lover will be obsessed with this kind of pleasure, and thus drag herself into the abyss. There is no general in the world who always wins. Victory or defeat is commonplace. However, it is rare to see such a tragic financial market.