Chapter 156 Too Big To Fail
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There is no need to continue meetings without results. The response of the global market is the best judgment. Mikhail already knows how to do it. What he has to do now is to keep the test program in the computer room that has not passed the test running. Go down, and at the same time open the maximum fund authority to the computer.
The financial market in the United States is just now testing the waters of electronic trading, and most companies still regard traders as the most reliable. Know that hiring a skilled trader on Wall Street costs a lot of money. Seryozha knew that the future market would no longer be determined by those in red vests on the New York Stock Exchange. Most of the transactions are completed silently in the quiet computer room.
When the opening bell of the New York Stock Exchange rang, a large number of buy orders began to flow to the electronic trading system of the New York Stock Exchange through various channels. Ke has already used computers to carry out delivery statistics. Just a few minutes ago, the news that the Toronto stock market began to plummet had made Wall Street give up its last illusion. Now, ordinary people with a little common sense know that a brutal plunge is inevitable.
Now all the institutions are a strategy, sell, sell, sell all the short-term investment and long-term investment that can be sold, and try to recover the losses as much as possible. But when everyone is selling in one direction, whoever strikes a deal before everyone else becomes a crucial factor. Even skilled traders cannot compare with computers in terms of selling speed.
The ever-emerging price difference created the best practical opportunity for Columbia Bank's high-frequency trading system, while the IBM trading programs of other institutions sent a large amount of transaction data to the New York Stock Exchange, causing network congestion. In this case, The data of high-frequency trading has the highest access authority, which gives Columbia Bank an excellent opportunity to make profits.
All kinds of transaction data frantically poured into the servers of the New York Stock Exchange and Nasdaq. Only Columbia Bank's transaction data can flow unimpeded. Many people place buy orders and want to take advantage of the chaos to pick up some cheap stocks, but because they did not estimate the situation enough, and after a lower price appeared, they regretted it. At this time, they wanted to cancel the order but because of the network delay The inability to do so created room for Colombia's high-frequency trading system to exploit loopholes. Many people's quotation machines show that the transactions that have not yet been completed have actually been successfully captured by the high-frequency trading system.
At this moment, the high-level doors of Columbia Bank are waiting in the conference room. The IT service personnel inside the bank transmitted the data to the list display screen in the conference room. As the profit amount calculated by the computer continued to rise, Mikhail finally relaxed.
"I didn't expect it to be so easy to make money. This machine is simply a money printing machine!" Someone said sincerely.
"I really don't know how many traders we need to hire in the future. Now it seems that even the best traders are no match for computers!" Someone said pessimistically. He had already seen that once this system was popularized,
In the future, I am afraid that many traders who wear red vests and shout hoarsely on the floor of the New York Stock Exchange will lose their jobs.
Bill Gross did not express any opinions. In fact, high-frequency trading is not mysterious at all. Even elementary school students can easily understand its principles. That is to use the fastest speed to find the buy order and sell order with a price difference before everyone, and then make a deal with both parties respectively. This is actually a kind of cheating, but when electronic trading first appeared on Wall Street, the NYSE probably didn't know this kind of cheating. The cheating artifact of high-frequency trading has made Columbia Bank huge profits, and Columbia Bank will never let outsiders notice it. In other words, until the regulators seal the loophole of high-frequency trading, Columbia Bank is invincible.
After observing for a while, Mikhail left the company early, and now he doesn't have to worry about it anymore. He will go back and report the results of the high-frequency trading system to Sergei. Then get a good night's sleep and return to the cage. Today's transaction is conservatively estimated to make a profit of 700 million yuan. There is no pressure to earn this kind of money.
After Mikhail returned to his residence by helicopter, he made a phone call with Sergey Shale, during which Mikhail praised the high-frequency trading system. Seryosha was not too excited about this, because when he proposed to develop this system, he already knew that it would be invincible. Sergey reminded Mikhail that after the stock market stabilized, he could slowly get involved in some blue-chip stocks with long-term investment value, such as General Motors and the like. Because Columbia Bank's current wealth is still dominated by cash, this is abnormal for a financial institution as large as Columbia Bank.
"Mikhail, what do you think of us taking over Marlboro's parent company, Philip Morris? When we first met, we used to buy Marlboro cigarettes, which are the best sellers on the black market," Seryozha suggested.
"Tobacco company, good idea! The cash flow is sufficient, but it may not be easy to operate, after all, tobacco companies are not short of money." Mikhail said with some excitement.
"It doesn't matter, you can ask Peterson from Blackstone. They are experts in this field. I think we may be able to take advantage of the stock price drop to buy a large amount of shares in these companies. In this market environment, there should be no one with us. Grab chips?" Seryozha suggested.
"Seryozha's market has just started to fall now, isn't it a bit of a loss for us to sell at this time?" Mikhail wondered why Serezha was in such a hurry. If it was an investment, wouldn't it be better to wait until the stock price was lower?
"Mikhail, I hope that Columbia Bank can really gain a foothold on Wall Street, but our customers are not only drug lords but also mafia, and doing business with them is too dangerous. I hope that Columbia Bank will become the bank of choice for first-class corporate financing in the United States , Only in this way can we have the opportunity to reach the level of Goldman Sachs. At that time, we will have the status of being too big to fail, and our money laundering will be truly free from any laws and government control. Get real In order to obtain this status, we must control as many top companies in the United States as possible, until one day, when the Federal Reserve formulates any policy, it will consult us.” Sergey Sha explained.