Chapter 78: Only I Have My Own Law Chapter 78: Placing a Deposit for Earth

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Protagonist:

Chen Yi

Monday.

Gold Source International was once again ready to enter the North American exchanges and fight.

1.7 million, amplified by 265x leverage, totaling up to 450 million US dollars. At the market price of 5,000 yuan per arm, this sum, converted into 3.78 billion RMB, could buy 756,000 arms and add at least 378,000 disabled people.

Or, if this money were invested in the endless business of eating meat, it could buy 200 million kilograms of beef, weighing 200,000 tons, enough to crush an aircraft carrier, or let one person eat for 200,000 years...

Such an amount of money was already somewhat respectable among traditional stockbrokers. Their leverage use was ultimately cautious, often speculating with their own funds. And in futures trading where 10x leverage was common, 450 million US dollars could also attract some attention.

If not in this monster world of Wall Street, this amount could even become a medium-sized operator, reaping the benefits of the fisherman—of course, if not in such a monster world as Wall Street, one couldn't get 265x leverage either.

Before the market opened, Chen Yi did not, as others imagined, expand his hunting range.

Instead, he narrowed his target exchanges to two: the New York Stock Exchange and the Chicago Mercantile Exchange.

This approach, although it could not better seize high-value arbitrage opportunities and thus reduced the profit rate, could effectively reduce the unit workload of the "Siren" and increase exchange rebates.

At the same time, due to the increased capital, as long as the Siren could maintain the fastest speed, in these two exchanges, it could still get whatever it wanted.

The "beep" sound of the conference call starting rang out, and Tang Xiongfei shouted passionately: "Mr. Chen, we are all ready. Also, the New York Stock Exchange promised us that if the daily turnover reaches 1 million shares, they will increase our rebate by 3 points."

"22 cents per 100 shares?"

"Yes, at least 220,000 US dollars a day." Tang Xiongfei said while looking back; there were only three people in the room including him and the accountant. He didn't know if they would use 200,000 US dollars in salary in a year. The boss's pocket change was this amount in a day...

However, his mind was quite balanced; without the boss, he would still be bitterly enduring days in Jiangning, where would he get the feeling of making a name for himself on Wall Street.

In fact, anyone who received a normal education would admit the value of capital; only a few trend-followers who curry favor with the crowd would fail to see the meaning of capital, and would count both the risk and intelligence invested in capital as "surplus value"—where in the world is there any surplus value—facts prove that without those who labor with their minds, those who labor with their strength would starve even if they worked themselves to death; without capitalists, those who labor with their strength would ultimately be worked to death and starved to death.

Chen Yi was also quite tempted by 220,000 US dollars; calculating that 1 million shares wasn't actually that many, mainly he had to seize market opportunities, after all, without market fluctuations, the turnover rate of institutions like the New York Stock Exchange wasn't very high. Otherwise they wouldn't be rushing to get high-frequency traders to enter.

"Today we mainly trade on the New York Stock Exchange." He decided to narrow the range again; meticulous work was the inevitable choice after capital increased, otherwise even if the supercomputer was powerful, it couldn't sweep up all money-making opportunities on the market. In comparison, exchange rebates were relatively more stable.

"It started..." the trader suddenly shouted, not caring about the boss's orders, and took the lead in clicking the mouse, announcing entry into the market.

The "Siren" entered Wall Street.

Tang Xiongfei stared intently at the trader, but there was actually nothing to see. So-called lightning trading was exactly fast like lightning; everything was handled by the computer, and people only needed to determine the strategy.

The trader had long completed the preliminary preparation work; only to see stocks buying and selling constantly jumping on the screen, completely needing no operation.

"10,000 shares." In just two minutes, Tang Xiongfei shouted.

"20,000 shares."

"30,000..."

Chen Yi calmly looked for a while, feeling Tang Xiongfei was really too noisy, and simply said: "Go find a bank; I told you, we need at least 500x leverage."

Tang Xiongfei wilted at once and said in a low voice: "Boss, I've even tried New Jersey Bank; these snobs have high requirements..."

"In two hours, go find Mellon; notify them that if they can't give us 300x leverage, we'll use another bank."

"Which bank?" Tang Xiongfei was confused, waited a while before understanding, and immediately shouted: "Boss, other banks only give 200x leverage; Mellon agreeing to 265x is already very good. If we leave Mellon, what do we do?"

Chen Yi grunted and said: "Just tell them."

Lightning trading or high-frequency trading must be the future direction of development.

Gold Source International had already proven their potential; at this time, it should be when all banks were competing to snatch them up.

Ignoring Tang Xiongfei's efforts, Chen Yi continued to cross his legs and drink Ginseng Energy Recovery Potion Tea.

He was very clear in his heart that a monster-level supercomputer like the Siren, even three years later, Wall Street might not necessarily be able to install one, let alone popularize it.

Even an incomplete Siren was still one of the most powerful supercomputers in the whole world; its existence was the greatest capital.

New York's morning was unusually quiet.

The gentlemen of Gold Source International silently accumulated trading numbers and profits; whenever the accountant settled an account book, new profits would be injected into the bank's guarantee deposit, thereby leveraging out more money for speculation.

This compound interest calculation method was dangerous and exciting, far faster than wins and losses in a casino.

It should be said, this was the world's largest casino. Compared with it, the savage and crude Las Vegas was more like a child's toy.

Eastern Time 2 PM, gentlemen familiar with the Nasdaq market all knew that a new small brokerage firm of Gold Source International had joined their ranks.

A turnover rate of 100,000 shares per hour naturally had to form relationships with other traders. However, for gentlemen familiar with the Wall Street ecosystem, adding new blood was a natural thing.

William Mellon from the Investment Department of Mellon Bank was the first to get Gold Source International's data. He examined one by one the trading details using their own funds as leverage, and after a long while put them down, instructing the secretary: "Please invite the manager of Gold Source International for coffee. Tonight."

The secretary obeyed and left; William tapped the table there, desperately thinking: "Haven't heard of a new colocation service provider joining the New York Stock Exchange; their computer speed seems a bit too fast?"

The so-called colocation service provider was simply placing one's own server right next to a trading center's supercomputer, connecting the two with fiber optic cables, thereby omitting even the time consumed by short physical distances.

The benefits of this were very obvious: the trading center's supercomputer simultaneously transmitted trading information to the screens in the hall, personal terminals, and the colocation service provider's hands. Undoubtedly, the latter's processing speed was tens of thousands of times that of the former two, enabling the colocation service provider to learn new trading information much earlier, thereby increasing profits and reducing costs.

However, all major exchanges had their own account books; although sacrificing the interests of retail investors, they firmly bound colocation service providers to their own doors, especially the fees of hundreds of thousands of US dollars, which were naked interest distribution.

After considering for only half a minute, William decisively pressed the button on the desk and said: "Jenny, please ask Mr. Robert from IBM to come; tell him we want faster computers."

"Faster?"

"That's right." William released the button and then muttered to himself: "Always be the fastest person in the market."

However, he would never guess even if he racked his brains that Gold Source International's computer was a top-ten supercomputer in the whole world.

This was not easy to buy.

At the same time, the investment department under Merrill Lynch was participating in the Wall Street feast in the capacity of a high-frequency trader.

Catherine, as Deputy General Manager, happened to be patrolling here; she wore a beautiful well-fitted purple suit, arm-in-arm with her newly subdued boyfriend, Ma Ke Priest—a very strange and stylish profession.

The head of the Investment Department was an old subordinate of the president and was also very familiar with Catherine; several people walked while introducing the work of the Investment Department.

The so-called "Deputy General Manager"; the term General Manager was purely nominal, "Deputy" was the real thing.

Catherine, who had just returned from studying for an MBA at Copenhagen Business School, besides continuing her previous main business of philandering, had a side job of interning at Merrill Lynch.

Of course, this internship proceeded in a rather high-end and happy manner; the title of Deputy General Manager alone made that clear.

A trader was busy working at a computer; Catherine took note of his pert little buttocks and walked over without hesitation. Minister Excellency was still there introducing: "This is our most advanced high-frequency trading system, its main function..."

"Where are you from?" Catherine didn't listen to him at all, her arm resting on the trader's shoulder, then his upper arm...

"... Georgia."

"Not bad, I like Los Angeles."

"... Los Angeles is in California."

Catherine decided to change the subject, both hands resting on his shoulders, saying: "Do you often go to the gym?"

The trader's face turned black, and he said uneasily while shifting his body: "I go every week."

Mark felt he should step forward; although he actually didn't think much of it, he still pointed at the screen and said: "This is your trading system?"

"That's right, at least 500,000 shares are traded every day, just the exchange rebates exceed 100,000 dollars; we use three parallel mainframes..." The Minister finally felt some relief, speaking without pause.

He immediately pointed at the screen and said: "It is divided into two parts; the lower part you see now shows normal stock prices, red represents a rise, green a fall. And in the upper half, it shows our profit status; white means there are no trades without profit, done to earn exchange commissions; yellow represents losses, which can't be seen now because we almost never lose; similarly, blue is our favorite color, representing profitable trades..."

"Then what is orange?" Mark suddenly asked.

The Minister poked the screen with his hand and said with a laugh: "Orange is not good; you must be vigilant; it means the orders we were about to execute were snatched away by other high-frequency traders first; such things generally don't happen."

Mark said doubtfully: "Are these orange? Or is it the monitor's color display..."

The Minister had long since turned around, his forehead covered in fine beads of sweat.

Almost the entire upper half of the screen had already been covered by orange.