Returning to his senior year of high school, he went all in and made billions by buying at the botto
Chapter 81 Swiss Tsunami!
2014 12 Month 31 Day.
The Ministry of Commerce officially issued an announcement.
Starting from January 1, 2015, the export quota management for rare earths was abolished.
The news caused an uproar among trading companies that relied on quota premiums.
The export quota of 1,000 tons on Xiling Mining's books lost its original value almost overnight.
When Liu Xin saw the news, her back was instantly soaked with cold sweat.
He finally understood why Chen Mo had requested a suspension of the new contract in advance.
If long-term export agreements are signed under the old model, Xiling Mining is likely to face huge default and price risks after the policy shift.
And Chen Mo, once again, managed to anticipate the policy changes ahead of time.
Liu Xin's awe of him has reached a completely new level.
After the New Year, the atmosphere in European financial markets gradually became subtle.
The European Central Bank is sending increasingly strong signals of quantitative easing.
The euro remains under pressure.
A large amount of capital is flowing into Switzerland.
In order to maintain the euro-Swiss franc exchange rate floor of 1.20, the Swiss National Bank was forced to continuously buy euros, causing its balance sheet to expand at an alarming rate.
But the market still believes that it will always keep its promise.
Major investment bank reports still refer to 1.20 as "the world's most solid policy floor".
Numerous institutions continue to buy euros and sell Swiss francs at this level.
Only creative investment continuously does the opposite of what's happening beneath the calm surface.
Merrill Lynch, Goldman Sachs, and Morgan Stanley.
Three institutional channels are continuously absorbing long positions in the Swiss franc and short positions in the euro/Swiss franc pair.
A combination of spot, forward, and options trading is gradually taking shape.
As of late at night on January 14, 2015.
Creation Investment and Lu Jingyi's entrusted account have established a total directional exposure of over four billion Swiss francs.
The overall leverage is not too extreme.
The standby cash in Standard Chartered and offshore trust accounts can be replenished at any time.
Each bank can only see its own portion of the holdings.
No one knew that these seemingly scattered orders all ultimately pointed to the same person in a villa in Jiangcheng County.
Guanlan Royal View No. 16.
Inside the study, three encrypted terminals were lit up simultaneously.
Chen Mo sat alone in front of the screen.
The EUR/CHF exchange rate remains close to 1.20.
Calm, stable, as if it would never be disturbed.
The calendar on the table has been turned to January 14, 2015.
Chen Mo picked up the coffee, which had long since gone cold, and his gaze fell on the time in the lower right corner of the screen.
There are only a dozen hours left before the Swiss National Bank announces its interest rate decision.
.............
2015 1 Month 15 Day.
Five o'clock in the afternoon.
Chen Mo sat in front of the screen, his heart starting to race.
5:20 PM.
In the trading room of Merrill Lynch in Hong Kong, Lu Jingyi, dressed in a well-fitting black short suit and with her legs crossed in black stockings, sat alone in the glass office.
The phone on the table vibrated slightly.
Xiao Mo: Open the terminal.
With just three words, Lu Jingyi's expression hardened slightly. She sat up straight, her perfectly pressed silk shirt outlining a captivating curve on her chest.
She immediately turned on her computer and logged into Merrill Lynch's internal market data system.
Euro to Swiss Franc, 1.2009, no anomalies, curve unusually stable.
Many traders are still using the 1.20 policy floor for arbitrage.
In their eyes, the Swiss National Bank is the most reliable guarantor in the global foreign exchange market.
Lu Jingyi stared at the screen, her heart inexplicably racing. Over the past few days, Chen Mo had used all of the $60 million she had authorized to buy forward contracts and options in the Swiss franc direction.
If Chen Mo is wrong, the time value and holding costs will continue to erode his principal.
But if he's right...
Lu Jingyi dared not think any further.
5:29 PM.
Jiangcheng County.
Chen Mo leaned forward slightly, his eyes fixed on the news terminal in the upper right corner of the screen.
The second hand ticked slowly.
Fifty-seven.
Fifty-eight.
Fifty-nine.
5:30 PM.
A red emergency news alert from the Swiss National Bank popped up without warning.
The world seemed to fall silent for a moment.
next second.
The entire global foreign exchange market exploded!
The EUR/CHF exchange rate, which was originally set at 1.20, suddenly seemed to have its floorboards pulled away.
1.1980!
1.1850!
1.1600!
In less than two seconds, three key price levels were breached in quick succession!
There is no support.
There were no buyers.
There isn't even a normal transaction ladder!
A deluge of stop-loss orders, margin calls, and algorithmic sell orders poured in like a flood bursting its banks, crashing into an already depleted market.
"boom--!"
Merrill Lynch trading terminal suddenly displayed a series of red alerts.
The real-time profit figures in my Goldman Sachs account started jumping wildly.
On Morgan Stanley's trading page, the spreads, which were usually only a few basis points, suddenly increased to hundreds of basis points!
1.1200!
1.0800!
parity!
break!
The 1.20 defensive line between the euro and the Swiss franc, which had stood for more than three years, was shattered into pieces within a minute of the Swiss National Bank announcing its abandonment.
Countless institutions that bet that the Swiss National Bank would always hold the floor were caught off guard and had no time to react.
.......
London.
In the trading room of a large forex brokerage, dozens of traders stood up from their seats at the same time.
"The offer has disappeared!"
"There are no Swiss francs available for sale!"
"A customer's account has a huge negative balance!"
"Cut off the trade! Cut off the trade immediately!"
new York.
Several hedge funds on Wall Street simultaneously issued the highest level of alerts through their risk control systems.
Those seemingly low-risk, stable arbitrage positions in the euro/Swiss franc pair are being wiped out at an unprecedented rate.
The margin has been reduced to zero.
The principal is gone.
They even owed brokers debts several times the principal!
Hong Kong.
Lu Jingyi stared at the plummeting hourly chart line on the screen, frozen in her seat.
1.0500.
0.9800.
0.9200!
In some liquidity channels, the price even fell below 0.85 at one point!
The dramatic fluctuation of more than 30 percentage points was compressed into just a few minutes.
This is not a foreign exchange fluctuation.
This is the instantaneous collapse of the monetary system!
In Lu Jingyi's private account trading pool, the profit figures have completely lost their sense of reality.
Ten million US dollars.
Fifty million US dollars.
One hundred million dollars!
The numbers are still jumping wildly upwards.
She suddenly covered her mouth, her breathing almost stopping.
Chen Mo was right.
The Swiss National Bank actually broke the 1.20 exchange rate floor!
This is truly an epic crisis of government credibility!
……
Guanlan Yujing.
Chen Mo took a deep breath; he had been waiting for this moment for far too long.
"Don't aim for the absolute lowest point."
"Settle the options first!"
His fingers flew across the keyboard as he connected to the Merrill Lynch trading desk via a dedicated line.
Chaos erupted on the other end of the phone.
"Chen! The market has lost liquidity, and we cannot guarantee that all orders will be executed at the screened price!"
"Execute according to the agreement!"
Chen Mo's voice was frighteningly calm.
"The exercise price, counterparty confirmation, and cash settlement terms are all clearly stated."
"Execute the first batch of Swiss franc call options immediately!"
"Whoever refuses to confirm will have their breach of contract clauses invoked!"
There was a brief silence on the other end of the phone.
Then, the Merrill Lynch trading director gritted his teeth and replied, "Understood!"
This is why Chen Mo was willing to pay higher costs to sign institutional-level over-the-counter agreements with Merrill Lynch, Goldman Sachs, and Morgan Stanley.
Small forex platforms can disconnect from the internet, and ordinary brokers can declare abnormal transactions invalid.
However, these top global investment banks cannot easily default on their debts.
They can widen spreads and delay confirmation, but they cannot ignore a well-structured institutional agreement with clear legal responsibilities.
The first batch of Swiss franc call options has been settled in cash.
Profit received: $286,000,000!
Chen Mo didn't even blink.
Goldman Sachs closed out 30% of its EUR/CHF short positions.
The instruction has been issued.
Goldman Sachs trading desk quickly began splitting orders.
0.8720.
0.9010.
0.9380.
Prices fluctuate wildly across different liquidity pools, with quotes differing by more than ten percentage points even within the same second.
Nobody knows where the real market price is.
Chen Mo did not try to sell in the most perfect position.
In a black swan market, paper profits are not real money; only the numbers that are actually closed out and deposited into your pocket truly belong to you.
"Morgan, execute the second phase of profit-taking."
Merrill Lynch, liquidate half of the forward contracts.
"Keep 20% of your Swiss franc long positions; don't liquidate them all!"
Orders were sent to Hong Kong, London, and New York.
Traders from three investment banks simultaneously sought liquidity for Genesis Investment.
This Cayman institution, which was virtually unknown just a few weeks ago, has now become one of the most terrifying beneficiaries in the global foreign exchange market.
5:47 PM.
The first wave of stampedes finally slowed down slightly.
The euro rebounded rapidly against the Swiss franc from extreme lows.
0.94.
0.97.
1.01.
Banks, central banks, and large institutional funds that had just been stunned by the blow began to enter the market to take over.
However, the market remains completely out of control.
Chen Mo has already taken profits on most of his positions within the chaotic range of 0.91 to 1.01.
On the three terminals, profit figures were continuously being calculated.
The Merrill Lynch account has realized a profit of $1.47 billion.
The Goldman Sachs account has realized a profit of $1.09 billion.
The Morgan account has realized a profit of $930 million.
The unsettled options and remaining positions have a paper profit of over $600 million.
Total profits have exceeded four billion US dollars!
This is not the final number.
Chen Mo's original overseas capital of over 400 million US dollars was pushed to over 4.5 billion US dollars in just over ten minutes by the Swiss franc tsunami that swept the world!
The study was so quiet that only the fan was running and the notification sound of completed orders could be heard.
This string of numbers was enough to allow Chen Mo to step into the threshold of a true international capital behemoth overnight.
The ruble crisis gave him the right to sit at the table, while the Swiss franc black swan event gave him the power to overturn the table for the first time.
……
Merrill Lynch, Hong Kong.
With the final closing order confirmed, the candlestick chart and profit/loss figures that had been flashing wildly on the screen for weeks finally came to a complete stop.
Lu Jingyi released the mouse and sank into the large boss's chair as if all her strength had left her.
The only sound in the trading room was the violent heaving of her chest.
With a principal of $60 million, after deducting channel costs, handling fees, and the 30% profit to be accrued to Chen Mo as agreed, she would ultimately be able to obtain assets exceeding $400 million.
She felt a little thirsty, picked up the coffee on the table, and then put it down again.
Then she suddenly realized that her hands were trembling slightly and uncontrollably.
A few weeks.
Sixty million became more than four hundred million US dollars.
The profits generated by the Genesis Capital account are even more unimaginable.
Such a rate of return, even within the top circles she had been exposed to since childhood, would be enough to drive countless people completely mad.
But what truly terrified her was Chen Mo.
When the whole world trusted the Swiss National Bank, he bet everything on his judgment ahead of time.
During the most chaotic and frenzied times in the market, he did not lose control or greedily chase the lowest prices. Instead, he exited the market in an orderly and phased manner.
This is not just prediction, but absolute control over human nature, institutions, and risks.
Lu Jingyi took a deep breath, turned to look at the dazzling night view of Victoria Harbour, and a trace of awe welled up in her eyes.
Just then, the phone on the table vibrated.
The screen lit up with a text message from Chen Mo: First round of liquidation completed. Funds safe.
Looking at the words "funds security," Lu Jingyi suddenly didn't know whether to be angry or amused.
A black swan event, worthy of being recorded in history and capable of upsetting countless established European hedge funds, has come to an end.
In the boy's text message, there were only four words: "Funds safe."
She took a deep breath, suppressing the lingering tremor in her chest, and dialed Chen Mo's number.
The call was answered almost instantly.
In the background, the faint sound of Chen Mo typing on a keyboard could be heard.
"Did you receive it?" The boy's voice remained gentle and composed.
"Chen Mo..." Lu Jingyi finally spoke, her voice trembling slightly, "Do you know how many institutional managers on Wall Street are lining up to jump off buildings tonight?"
"Life and death are preordained, wealth and honor are determined by fate," Chen Mo said calmly. "The moment you enter the arena, you should be prepared for the worst."
Lu Jingyi remained silent for a moment, finding it difficult to connect this Grim Reaper who had reaped the world with the boy she had met a few days ago.
"Xiao Mo, who exactly are you?"
Chen Mo leaned back in his seat, his eyes still fixed on the market data.
"A senior high school student."
Lu Jingyi was silent for two seconds.
Do you think I would still believe that now?
"I haven't graduated yet."
"Chen Mo!"
She rarely called him by his full name.
Chen Mo finally chuckled.
Hearing the familiar laughter on the phone, Lu Jingyi's tense emotions inexplicably relaxed a little.
"Jingyi, are you satisfied with the surprise?"
Looking at the string of numbers in her account that could change the fate of countless people, Lu Jingyi felt a complex mix of emotions that were hard to describe.
"This isn't a surprise anymore, it's a shock." She paused for a moment, her voice softening slightly. "Xiao Mo, thank you."
"It's just a collaboration."
"no."
Lu Jingyi said seriously, "You didn't need to bring me in the first place."
"You were the one who dared to place the bet."
Chen Mo stretched: "The opportunity is right in front of us, but there are very few people who dare to go all in."
"You deserve it."
Lu Jingyi held her phone, her heart slightly warm.
She has seen too many people.
Some people fawn over her because of the Lu family's background.
Some people go to great lengths to get close to her in order to use her to climb the social ladder.
Some people are full of sweet talk, but when it comes to real benefits, they'd rather take the last penny.
But Chen Mo is completely different.
"Xiao Mo".
"Um?"
"Don't even think about getting rid of me again."
Chen Mo raised an eyebrow slightly: "Why does this sound like a threat?"
"It's a threat." Lu Jingyi chuckled softly. "I'll use these four hundred million to buy a boat ticket."
"it is good."
Chen Mo didn't say anything more, just one word, but it weighed as heavy as a thousand pounds.
……
7 PM.
The Swiss tsunami is still sweeping the globe.
Several forex brokers have announced that they are facing financial difficulties.
Countless hedge funds have suffered huge losses.
Some institutions that were once renowned in the foreign exchange market have suddenly found themselves on the verge of bankruptcy.
The Swiss National Bank dominated all the headlines in global financial media.
The final settlement of Chuangsheng Investment was gradually completed through the emergency accounting of the three investment banks.
Net worth of equity: US$4,382,000,000.
Lu Jingyi's entrusted account pre-settlement equity: USD 472,000,000.
The remaining Swiss franc-oriented positions still held have a book value of approximately US$200 million.
For the first time, Genesis Investment's total assets under management have surpassed five billion US dollars!
The moment this number appeared, calls came in almost simultaneously from Merrill Lynch Asia Pacific, Goldman Sachs Asia, and Morgan Stanley's institutional business units.
Partnerships, trusteeship, financing, fund issuance, private banking, global asset allocation.
Those top-tier organization leaders who once needed Lu Jingyi's help to communicate are now vying to fly to Jiangcheng County to see him in person.
Chen Mo refused them all.
Tell them I need to rest.
After hanging up the last call, he shut down both terminals, leaving only the screen for monitoring the remaining positions.
Outside the window, the night in Jiangcheng County was quiet.
There were no traders screaming, no chaos on Wall Street, not even a passing car.
Chen Mo stood alone by the window, looking at the young face reflected in the glass.
Five billion US dollars.
In his previous life, he spent over twenty years earning only 300 million RMB.
In this life, in less than half a year, he has already acquired wealth that he never dared to dream of in his previous life.
But he didn't feel the ecstasy he had imagined; instead, he felt a confidence that transcended time and that he had seized control of his destiny.
last life.
The money is in Switzerland.
People are in heaven.
This lifetime.
The Swiss money finally flowed into his pocket.
Chen Mo looked out the window and suddenly chuckled softly.
"This time."
"As long as we're alive, our money will stay with us."
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