Rebirth of the Financial Overlord

The emergence of the Internet has brought about the rapid dissemination of world information.

As a result, open outcry is becoming a thing of the past on many exchanges.

U.S.

boston.

Donny Wilson was facing the computer, watching the fluctuations of fine copper on the screen, feeling extremely excited and nervous, as well as uncontrollably excited.

Donny Wilson is an individual investor in financial derivatives, er, this is a nice way of saying it. In fact, he works as a porter at Walmart. When he has money, he will speculate in the financial market.

In short, a retail investor.

And Donny Wilson's latest trading product is Fine Copper.

That is, the copper futures contract listed on COMEX (New York Mercantile Exchange) in the United States, commonly known as US copper.

The biggest difference between it and London copper is that LME copper is an open outcry order, while on-site comprehensive copper refers to the electronic trading order of LME copper.

The copper futures of the COMEX exchange in the United States is not the case. It is refined copper, that is, deeply processed copper.

Contract code: HG

Contract size: 25,000 lbs

Contract Type: Precious Metal Futures

Exchange:NYMEX

Contract month: all year

Liquidation form: physical delivery

Minimum price fluctuation:￠0.05/$12.50

Daily rise and fall: None

Trading hours: Monday-Friday 6:00AM-5:15AM the next day

Last trading day/time: the third last working day of the delivery month

Last delivery day: It may be any working day of the delivery month, but not later than the last working day of the delivery month

A week ago, the major media were analyzing the future pressure on the copper market, so Donny Wilson established his own short position on Fine Copper.

Each fluctuation of a single contract is 12.5 US dollars. He took out all his savings and overdrafted two credit cards, hoping to achieve financial freedom in this wave of market conditions.

Just a week later, the price of US copper has not changed much, and he has not made any money.

thump!

Suddenly, a beep sounded from the computer used to count the supermarket data.

Your account has been forcibly closed.

On the computer screen, the price of refined copper, which had been stable all the time, suddenly shot up at a 90-degree angle like an anti-aircraft gun, and the market was pulled up by 6% in an instant by dozens of hundreds of buy contracts.

Because of this, all of Donny Wilson's short positions were directly closed by the system's risk management program. The 20,000 US dollars in the account lost only 300 US dollars in a second, and almost broke the position.

And as these buying data passed, there was a large amount of short selling in the market, and the copper price returned to its original position again.

Happened too fast.

Therefore, the straight line that went up just now on the trading software was suddenly smoothed out again, and everything seemed to have never happened.

It was like a dream.

That's what Donny Wilson felt when he looked at the three hundred dollars left in his account.

No change in copper price, $17,000 in his account, but out of nowhere

In an instant.

I don't know how many people have experienced the same experience as Donny Wilson.

Thousands of retail speculators watched the money in their accounts disappear suddenly, and they didn't even understand what happened.

Unfortunately, no one made any money from it.

Because even a long-term trader can't react at all to close his position in just a split second.

At the same time, I don't know how many people watched the losses in their accounts, and they felt as if they were struck by lightning.

And at this time.

Wall Street First International Capital.

Lania was like a frightened rabbit, fidgeting and looking at Shen Jiannan in fear, his face turned pale with fright.

Just now, she accidentally bumped into a strange object on Shen Jiannan's desk, and then heard a beep, and a straight line flashed across the computer screen.

After coming to the company to play several times, she has roughly understood that those strange things on the screen represent unimaginable money.

Shen Jiannan was sitting on the sofa drinking tea, enjoying Masako Shinkawa's elegant demeanor, when he suddenly heard an alarm beep, and seeing Rania's frightened expression, he guessed what happened in an instant.

Went over to have a look.

Good guy.

Because a keyboard was not locked, it was instantly triggered to buy more than 2,000 Meijing copper buying contracts.

Lania looked at Shen Jiannan's calm face, she didn't seem to be angry because of it, she felt relieved a lot, she said cautiously: I didn't mean it.

Shen Jiannan joked, Do you know what you did just now?

Rania: .

Shen Jiannan said indifferently: You triggered a one-click auction and bought 2,600 Meijing copper contracts, which is about 2.6 million US dollars. I estimate that you probably killed hundreds of speculators.

Lania was about to cry: I really didn't mean it.

Shen Jiannan spread his hands and said, My rule is that if you do something wrong, you need to be punished.

punish?

Rania didn't know what punishment she was about to receive.

But being left here alone, except when she was with Avril Lavigne, she was terrified facing Shen Jiannan.

At this time, when he heard that he was about to be punished, he grabbed his fingers and looked at Shen Jiannan pitifully, with clear and frightened eyes that seemed to be asking what kind of punishment he would accept.

Shen Jiannan didn't speak, but returned to the tea table and glanced at Masako Shinkawa.

Shinkawa Masako smiled without saying a word, poured a cup of tea into her mouth, bent over Shen Jiannan's body, and put it into his mouth.

Not long after, the kimono on Masako Shinkawa opened up a lot.

Lania stared blankly at the two, blushing, feeling extremely sad

But Shen Jiannan hooked his hand at her, motioning for her to come over.

The little girl didn't dare to refuse. She lowered her head and didn't dare to look at the two of them. She walked over cautiously, but she could hear various voices in her ears.

Shen Jiannan patted the side of the sofa and motioned for Rania to sit down.

Rania didn't dare to refuse, her fair face was almost dripping with blood, but she could only sit down.

Shen Jiannan didn't care about her, enjoying Masako Shinkawa's tenderness, took out his mobile phone, and dialed William's number.

For half a month, Sumitomo has invested more than three billion U.S. dollars in order to suppress the continuous release of short-seller pressure, but even so, the price of Lun Copper remains unbreakable in the 2700 range.

In addition, the Wall Street Journal, the London Journal, and many media organizations are creating momentum for the short sellers, and Sumitomo has assumed great market selling pressure.

Sumitomo Commercial Nonferrous Metals Trading, London.

Binzhong Tainan looked indifferent, looked at the price of Lun copper on the central computer quotation system, picked up the phone on the table and called the on-site trading team: Sakata-kun, it's time to strangle those guys.

Sakata Koyama let out a shawl and gave instructions to the trading team.

CA3M, buy 10

CA3M, buy 10

CA3M, buy 10

The huge purchases caused the price of copper in London to soar in a straight line. In a short time, the increase exceeded 2%.

And at this time.

William was chatting with Shen Jiannan on the phone. When he heard that his boss asked him to open a position in the forward contract, he was a little puzzled and said, Boss, Sumitomo's main force is in the March contract. It doesn't make sense for us to open a position at 6789.

Shen Jiannan said lightly: You will understand after a while.

William didn't ask much, and replied: Then do we still increase our long position in March?

Shen Jiannan glanced at the soaring trend of Lun Copper on the big screen in the distance and said: Of course, since Sumitomo wants to raise the price, we will help them.

On the same day, Lun Copper closed with an increase of 3.5%, breaking through the recent consolidation high of 2700.

After the market closed, relevant news spread in the market.

Big News:

Sumitomo Metal said on Thursday it was reviewing strategic options for a minority stake in its Sierra Gorda copper mine in northern Chile, which is controlled by Polish copper group KGHM.

The Asian mining giant's 45 per cent stake in the mine is being explored with the company's financial and legal advisers, RBC Capital Markets and US law firm Sullivan \u0026 Cromwell LLP one of the ways.

KGHM has come under fire for the huge investment allocated to Chilean mines (currently $1.2 billion and counting).

Production at Sierra Gorda, which began in 1989, has never met expectations due to challenges in metallurgical processes and processing using seawater.

Edward Sterck, an analyst at BMO Capital Markets in Canada, estimates that Sumitomo's stake is worth about $513 million today, assuming the mine reaches design costs and production rates.

It is worth noting that JV shareholders have been forced to provide external funding every year since its inception due to poor performance, which may result in a discount, he said in a note to investors.

World Nonferrous Metals Daily:

Peru's Sociedad Minera Cerro Verde SAA spokesman Pablo Alcazar said the company's $850 million expansion project was largely operating at full capacity, but limited by uncertainty about the future of the copper market, production from new projects was limited. will be postponed to March 1995,

Green Mountain Copper currently operates two open pit mines in southern Peru.

Freeport-McMoRan Copper \u0026 Gold holds a majority stake in Green Mountain Copper, Peru's Compania de Minas Buenaventura SAA and Japan's Sumitomo Corp. Its subsidiaries also hold shares in it.

August 27.

Mining News:

The Escondida copper mine is located in the Atacama Desert in Chile's Antofagasta province and is named after the Spanish word for hidden. The mine was discovered in 1981 and the first concentrate was shipped in 1990. BHP Billiton owns 57.5 percent of the mine, Rio Tinto 30 percent, Mitsubishi 8.25 percent, Nippon Steel Mining 3 percent and Mitsubishi Materials 1.25 percent.

Yesterday, Escondida Copper Mine talked about its concerns about the future economy in a telephone interview. Escondida will not rule out reducing production significantly in the future to avoid possible losses caused by the economic downturn.

As of December 1992, Escondida had reserves and resources totaling 27 billion tonnes grading 0.51% copper and 0.014 g/t gold. In 1992, the copper output of Escondida was about 1,189,100 tons, including 938,900 tons of copper concentrate and 250,200 tons of cathode copper.

In the night.

The whole of London is shrouded in lights, flashing and flashing, it is a different life.

Binzhong Tainan was extremely happy in his heart, looking at the still disk, his eyes were full of disdain and contempt.

What about First International Capital, what about Quantum Fund and Tiger Fund, you can find mining companies to attack and build momentum, thinking I can’t?

You guys, will never understand how terrifying the old Sumitomo is.

He called his secretary, Jiang Lizi, to open a bottle of red wine, and took the phone to express his gratitude to the major companies he had contacted before. Binzhong Tainan played with the secretary, enjoying the upcoming victory.

But do not know.

At this time, the president of the London Metal Exchange and the British financial regulator are holding a meeting at this time.

After a short meeting, the London Metal Exchange formulated new regulations: In view of the recent large-scale increase in copper positions, in order to prevent market manipulation, stabilize market order and the orderly development of the world economy, and support the orderly economy of enterprises, starting tomorrow , The premium and discount between the contracts of the Lun Copper standard must be between -28 and 0.

Various detailed rules stipulate the premiums and discounts between Lun Copper and spot and forward.

In short, it can be understood that the main force of Lun Copper in March and the forward price can only be discounted by 28, but not premium, otherwise, it will trigger an anti-manipulation investigation.

at the same time.

Huaxia, Shanghai Metal Exchange.

The exchange, which opened in May, launched a standard contract for electrolytic copper futures in June, which is divided into several contract varieties such as medium-term and forward.

It adopts a modern central computer for quotation transmission, and is the first commodity metal exchange approved by the Securities Regulatory Commission in China.

He Yuanchao, a former professor of economics at Huahai University, served as the first general manager.

It was daytime.

He Yuanchao and Song Jun were brewing tea in the office, talking about their plans for the future of the market, and when they talked about Shen Jiannan unconsciously, they both sighed and sighed.

Suddenly, the assistant Liu Yi hurried in and said: Mr. He, the copper futures suddenly increased its position by 100,000 lots.

He Yuanchao and Song Jun smiled at each other.

In this era of financial pricing, if you want to seize the pricing power in the copper market, how can you do without the financial derivatives market.

But if you want to grab the market pricing power, you need to have the participation of enterprise hedging, and the hedging of enterprises requires speculators to participate in the transaction to take risks. This requires market making to attract capital from all over the world to trade. Can grab market pricing power.

London copper has a high position of hundreds of thousands of hands, which is very attractive to the market.

Shencheng Exchange, if you want to do it, how can you do it without a huge trading volume.

He Yuanchao signaled to Liu Yi not to panic, and said, I know. The First Mining has told me before that they will register part of the registered warehouse receipts on our exchange, and you will follow up later.

Liu Yi was full of doubts.

The World Mining News previously reported the news of First Mining’s acquisition of various copper mines in Zambia. Even Wall Street was extremely concerned about how such an international mining giant would go to the Shanghai Metal Exchange to register warehouse receipts.

You must know that the trading volume of copper futures on the Shanghai Metal Exchange is only a few thousand lots, and such giants cannot hedge here at all.

However, doubts are doubts.

Realizing that He Yuanchao didn't want to say more, Liu Yi agreed and left the office.

that day.

The trading volume of copper futures on Shanghai Metal Exchange reached a terrifying 200,000 lots.

When the market closed, the exchange announced the list of clients for block trading, and the market was clamoring for it.

Long Chief: Masukura 60,000 lots, for Jiuding Futures.

Short chief: First Mining, increased its position by 80,000 contracts