Merrill Lynch Securities Center, World Financial Center, Manhattan, New York

Because Jiang Yelin's order according to his requirements, or the tacit understanding reached with Dominica, in fact, Dominic, the exchange assistant Dominic submitted the order in batches to Norton, a trader at Merrill Lynch, which made Old Ston hastily unable to finance the bonds, and did not have time to short in time when the first 1 million shares of Merrill Lynch traders were thrown, but chose to buy when the second 1.5 million shares were thrown. Normally, this should also be the position of the G3 fund to cover the long, at least the rhythm of the previous week!

As a result, it was out of control, and the total share of the G12 and G13 fund accounts of the first business department was about 80 million, but because the other varieties and stocks invested before did not have time to clear all the positions, so when the black swan event occurred, the funds available in these two accounts were only about half of the shares, 40 million US dollars, so when the second wave of selling 1.5 million shares smashed Ford's stock price to 54 US dollars per share, Lao Ston copied the bottom. The two accounts bought a total of 740,000 Ford shares......

The problem is that Ford's stock price only rebounded to 54.50 after the second wave of diving, and at the moment when Old Ston had no time to celebrate for his 1% short-term difference in buying the bottom, the third wave of 1.78 million shares directly destroyed the bulls' willingness to buy the bottom and resist on Ford stock, when the stock price plunged to $53, David Lynch rushed into Old Ston's office and yelled at him to order all positions in Ford stock, because everyone knows that the black swan event has happened, and stop loss or even backhand short is the only right choice!

People have the inertia of thinking, although the sell-off is turbulent, but the old ston is worried at any time that the G3 Foundation of the third business department is backhand long, and then this meat can become the laughing stock of the central sales department, because the G3 fund has never let the stock price of GE or Ford amplitude more than 3 percentage points in the previous three weeks of trading, and always shorts at a high level and quickly closes the position at a low level and backhand long, so Old Ston still hesitated for a short time under the reminder of David Lynch, and then things got out of control.

For Merrill Lynch, a leading brokerage firm, and other brokerages to follow the rules of a customer's buying and selling entrustment priority, so whether it is buying the bottom or borrowing and selling short, if the brokerage's internal proprietary fund and the customer's entrustment are submitted at the same time, it is necessary to give priority to ensuring that the customer's order is traded, when Ford's stock price fell to 53 yuan, the market has a situation of killing more, plus the old ston hesitated for half a minute and did not stop the loss at the first time, so when the situation is not good, Ford's stock price has fallen to $52!

It is normal for the G12 and G13 accounts to fail to borrow securities at a price of more than $55 at the beginning, because there are few chips circulating in the market, and the G3 fund of the third business department holds 4.28 million shares of Ford stock......

In fact, the process of marketization of securities in the United States is quite high, and large blue-chip stocks are the first choice and important allocation for many trust funds and long-term investment funds, so it is not a problem for the brokerage to lend securities from the side of securities holders, the problem is that for Ford Motor stocks, which have a daily trading volume of only 10 million shares, no securities company will put too many Ford stocks into its own stock pool and wait for investors to lend securities, because the refinancing of securities itself has to pay the cost of securities lending to securities holders.

This is like if the daily sales volume of the market is 2 million Ford shares, then the brokerage's securities lending quota will be maintained at most at 2.5 million or more points not exceeding 3 million shares, rather than inexplicably increasing the inventory to 5 million shares or even more, because there is not so much demand for securities lending, especially the market itself is a T+0 market, so buyers can sell at any time and reduce the demand for securities lending. On the day of this small black swan event caused by Ford shares, Merrill Lynch can provide 2.5 million shares of Ford Motor Securities Lending Scale! The base is actually quite large!

The problem is that there seems to be a pair of eyes in the market staring closely at the changes in Ford's stock price, while the G3 fund is short sold at a high level, there are funds that directly join the ranks of short selling, in line with the principle of customer first, the G12 and G13 funds of Old Ston have not grabbed the invisible big hand in the securities borrowing and lending entrustment, and finally when Ford's stock price fell by more than 5%, the bulls began to kill more and flock out, and this time is no longer a problem of securities lending. It's the question of how to grab the runway and close the 740,000 shares bought in hand.

The G12 and G13 funds in the first business suffered a heavy blow in the black swan event that afternoon, with an average purchase price of $54 and an average liquidation price of $52.25 for 740,000 shares of Ford stock, and a loss of $1.3 million, or 3.25%, in just 20 minutes. The stock price fell to 51.50, and the trading volume was sharply enlarged, at this time, due to the over-falling rebound, neither David Lynch nor Old Ston dared to act rashly, neither dared to lend short nor dared to buy the bottom to make up, who knows if Ford's stock price will continue to jump down, short selling, has fallen as high as 7.2% so that the technical rebound can appear at any time, it is not a human entanglement inside and outside, this afternoon Old Ston and David Lynch are like this.

The turmoil caused by the black swan event does not stop there, due to the deposit of the credit account margin system, the G12 and G13 funds can not even grab the financing of the G3 fund, not to mention that there are so many customers who are leading to financing because of the fall of Ford stocks, although Merrill Lynch is the leading large brokerage, but the amount that can be used for credit account financing is not unlimited, especially when a large number of customers add financing at the same time, the amount of financing will be interrupted for a short time. Or the financing waiting window, this is still an era when trading on the exchange mainly relies on traders to manually match transactions, so don't imagine how many billions of positions can be transferred to finance in a minute.

In fact, the financing of the internal self-operated funds of the central business department, the G3 fund occupies the majority, a total of about 1 billion financing funds, the newly established G3 fund has raised 120 million US dollars, you must know that the 10000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000

The average selling price of the 4.28 million Ford shares held by the G3 fund of the third business department was 55.00, and then the 4.28 million shares of Ford Motor that were short-sold was closed at 51.75, in fact, if the G3 fund had not closed its position at the price of 51.50 and bought 4.28 million shares, Ford would not have rebounded at all at the close of the market and stopped at the price of 52.25, and the trading volume of Ford Motor stock soared to 25 million shares that day, half of which came from the G3 fund's short selling……

Before the close of trading, the G3 fund used 4.4 million shares to buy at an average price of 57.50 to pull GM's share price from 57.125 to 60.125 in one go, almost recovering all the day's losses, and GM's daily trading volume also skyrocketed to the level of 30 million shares.

If the net unit value of the G3 fund was still 1.22 per share at the close of trading on Monday, after the thrilling Tuesday black swan event, the net value of the G3 fund skyrocketed to 1.4795 per share, a 26 percentage point increase in a single day! Of course, now, the G3 fund of the third business department holds 4.4 million shares of General Motors stock, the reason is very simple, investing in big blue chips is the only choice of the G3 fund, as the overall No. 1 car manufacturer, as the 15th weighted constituent stock of the S&P 500, it is normal to enter the bottom when the stock price plummets!

In this day's black swan event, Ford's shareholders and investors of all sizes obviously experienced a moment of shock, although the stock price ups and downs are normal, but looking at their own Ford shares in the last week accumulated a cumulative rise of nearly 8% in the last week, the sudden single-day plunge at most gave up all the gains last week This situation made everyone frightened, and even thanks to the closing less than 20 minutes ago, the invisible hand swept away the swarming chips and stabilized the stock price above 52 yuan, Although last week's gains have vanished, at least it has withstood the attack of the airs, right?

Serena Crane Ford, who is far away at Ford's headquarters in Dearborn, Michigan, is very satisfied with Ford's stock price today, of course, there will be no inside information and insider trading, and the heir to the Ford family who holds 3 million shares will join the short queue above $55, but at the position of 52 yuan, he not only made up for the shares he threw out before, but even increased his position to buy 2 million shares, which is all the funds he can mobilize temporarily, and now he holds 2 million shares of Ford's Class A common stock, 3,000,000 Class B preferred shares, and this is just the beginning......

For the guy who is far away in New York and brought $9 million in floating income to his credit account opened in the Michigan branch of Merrill Lynch Securities in just half a day, Serena William is glad that the other party may become his friend, not an opponent!