Chapter 99 Monopoly Position

  Lei Gong's rough and coarse appearance hid a sharp mind. He looked at Chen Yi with a keen eye and asked, "How did you come up with these two questions?"

  Simple idle talk can go deep into where.

  Chen Yi's question is a realistic problem. Especially the second question, how to take advantage of the monopoly position, that can be written into a book.

  As a renowned professor of Jiangning University, Lei Gongwu naturally had some research on this, but he was not willing to waste his time on an ordinary student, so he asked this question.

  Chen Yi found it somewhat difficult to answer.

  But he has his own way.

  "Professor Lei, suppose I have a company now with around $300 million in funds. Through bank leverage, we can guarantee $10 billion in capital and own a supercomputer with top-notch computing power, occupying a monopoly position. This situation should be very advantageous, right?"

  "Of course, a monopoly position is most suitable for market participants." Lei Gong looked at him with a gaze.

  "But in this case, I actually won't make any money, how can we solve it?"

  He talked about the difficulties he encountered, and smiled: "The cost of my supercomputer is $1 billion, the annual maintenance cost is between $500 million to $1 billion, and the exchange's transaction fees are $5 million per day... what can I do?"

  "If you give the exchange a portion of the money, it's a lightning transaction."

  "Yes, I always get it mixed up." Chen Yi smiled slightly.

  He doesn't need to give the exchange a share of the money, relying on the computer's superior ability, but for Wall Street brokers, giving the exchange money is a better choice.

  Because by placing their own computers inside the exchange, and connecting them to the exchange's supercomputers, they can reduce physical distance and save around a hundredth of a second. Whether from a competitive or cost-saving perspective, it is worthwhile.

  But "Hai Yao" cannot be paired with the New York Stock Exchange, so Chen Yi simply gave up on this idea, anyway its current speed is still sufficient.

  In half a year's time, securities firms will have new supercomputers joining the competition, let's talk then.

  。

  Lei Gong paused for a moment, then said: "What you're saying is indeed possible, but now there's no organization that would use such an expensive supercomputer..."

  "With only such a good supercomputer, it can cause monopoly and avoid vicious competition." Chen Yi boldly interrupted the professor's words, saying: "Suppose the high-frequency trading and lightning trading of the New York Stock Exchange are all monopolized by it, then the profit will be several times that of an ordinary supercomputer, right?"

  Lei Gong's face suddenly lit up with a smile and he said: "This student of yours is quite interesting, what you're saying is really happening, what's his name?"

  "Easy."

  "Uh-huh, great, come often to attend classes."

  The good students surrounding the podium were so envious that their saliva almost dripped down to their pants.

  "Now, on Wall Street in the US, there is a company called Golden Source International that is doing something similar. You can pay attention to it. Let's continue talking about the profit model of monopoly..."

  He acknowledged Chen Yi's right to waste his time.

  The latter showed a strange expression, somewhat proud, somewhat shocked, and somewhat amusing.

  He wasn't worried about being exposed as the owner of Golden Source International, compared to his identity as the third in line to inherit the Chen Group, a small Wall Street firm was far less conspicuous.

  At least outside of New York, it's not enough to cause concern.

  Moreover, the Vatican or some secret organization can use its powerful influence to obtain information for itself, ordinary people do not have this capital.

  "In simple terms, the monopoly price is the main means of obtaining monopoly profits. First, remember this." The voice of Lei Gongzi seemed to come from afar.

  Chen Yi's body shook slightly as he concentrated his mind and listened intently, reacting extremely quickly by saying: "However, high-frequency traders seem to be unable to specify a monopoly price."

  "Where's the rebate from the exchange?"

  "If a higher rebate is requested?" Chen Yi had thought about this and immediately denied it: "The 25 cents is basically the highest price they can offer, if more, the exchange will definitely terminate the company's operation through various methods."

  Before Leigong could say anything, he muttered to himself: "In the short term, NYSE may not do so, but high-frequency trading can bring them many benefits. But in the long run, they will definitely support other traders, give them more preferential treatment and help, and replace us, won't this lead to a business war and reduce profits?"

  "Business wars should be the most reasonable war." Lei Gong said with a smile, "So what you need to do is to make other traders have no power and space to replace themselves, thereby obtaining excess profits. Whether the exchange supports them or not does not affect the overall situation. Private companies in the United States must obey the law, exchanges cannot discriminate against trading companies, with these foundations, we can maintain a certain degree of monopoly, in Western economics, this is called 'market power'".

  Chen Yiruo thought for a moment before continuing to ask: "Then how can we strike at the other traders?"

  Professor Lei suddenly raised three fingers and said, "Technical monopoly, administrative monopoly, brand building to form market access. These are the three usual means used. If it were you, which one would you use?"

  "Is it a technology monopoly?" Chen Yi asked. Brand building and so on play a general role in the financial market. He first thought of more advanced computers.

  。

  Professor Lei chuckled and shook his head, saying: "As expected, you're still young, thinking that technology is useful. I'll tell you, the simplest way is administrative monopoly."

  "Administrative monopoly? How can America be administratively monopolized?" Lin Yuen asked, bypassing Chen Yi.

  "Don't think too highly of the US, they also have politicians and bureaucrats." Professor Lei used the word "also" with a self-satisfied smile: "You're still young, don't need to consider so much, but I'm telling you, any one of you who starts a company or does finance, never forget that the country is always the biggest monopoly."

  He patted the teaching case in his hand and smiled: "Political economics, although economy determines politics, politics is also guiding the economy. Everyone can go back and take a look at the cases in the library and on the internet."

  Chen Yi propped up his cheek and continued thinking, even unaware that the green tea in his cup had gone cold.

  Lin Yan looked at him with great interest, then looked at Han Jie.

  She had a good impression of this tea-brewing, particularly affectionate-looking girl, and so asked: "Are you familiar with Chen Yi?"

  "I'm familiar with it." Han Jie replied without hesitation.

  "Is he often like this?" Lin Yanyi still used her own gradual thinking, slowly approaching the target.

  Han Jie smiled and shook her head. She was also a bit puzzled by Chen Yi's recent behavior, feeling unfamiliar. However, she understood very well what it meant for the young master of a noble family to step down from power.

  Chen Yi was able to lift his spirits, think hard and strive hard, it can be said that nothing could be better.

  The "ding-dong" school bell rings from outside.

  The footsteps in the corridor suddenly decreased.

  Chen Yi was startled awake and didn't say a word, handing the cup to Han Jie before grabbing his phone and rushing out.

  Lin Yan couldn't help but take two steps forward, seeing that he had already started dialing the number, before stopping and turning around, only to find Ren Yuan standing beside her.

  "What's wrong?"

  "Uh... I just wanted to ask him about the party." Ren Yuan was slightly annoyed, and his main job for the past month had been building a buddy-like relationship with Liang Yu.

  Chen Yi's inaction has brought his plan to a near standstill.

  Lin Yan didn't think much, smiled and left. As she passed by Chen Yi, she heard him shouting loudly at his phone: "I don't care if you're familiar or not, find me someone in charge! Can't Wall Street find someone familiar? What do they make money from?"

  Lin Yan was somewhat curious about this, but she didn't associate it with anything.

  Is it possible that a somewhat strange student in our class has some connection to Wall Street? Among the teachers at Jiangda, those who can make it on Wall Street are as rare as phoenix feathers and unicorn horns.

  Han Jie remained quietly waiting in the distance, just as she had always done.

  After a long time, Chen Yi came back with her mobile phone and immediately asked: "Do you need help?"

  "It's just a small matter, I'm going to visit my grandfather and will have to skip class this afternoon."

  He has no psychological burden for skipping class. Now he's just saying it to avoid letting Han Jie make a trip in vain, and the hot water at Yuquan Mountain will be wasted if not used.

  。

  "I'll send you there." Han Jie carefully put the tea set into her bag and said, "My car is parked in the underground garage, it will take at most an hour to arrive."

  Chen Yi thought so too. The two of them went out together and when they arrived at the garage, sure enough, it was still that bright red Maserati.

  "What the ancients said about 'dressing up and riding a fine horse' must be this." Chen Yi said with a smile, sitting in the passenger seat, and added: "I'll definitely learn to drive next month."

  Han Jie smiled silently and focused on driving.

  About 40 minutes later, Martha arrived at the old mansion smoothly.

  The French plane trees by the roadside stood tall and upright, like loyal guards. The scene of a bustling entrance, as if still in memory.

  Chen Yi knocked gently on the door.

  Since retiring, Old Man Chen has been very particular about his influence. On ordinary days, he doesn't see guests or talk to people. Even close friends and acquaintances only meet with him on one or two fixed weekends every month.

  Fortunately, several of his grandsons were not among them.

  The housekeeper went out to greet him and then pulled Chen Yi along, saying as they walked: "Is it a family matter or something related to the company?"

  "My own."

  "That's good." The housekeeper, who had been following the old man for many years and had brought up Chen Yi since he was a child, smiled and said: "Don't worry, just chat with the old master, you're busy with university now?"

  "Skipped military training, life is pretty good." Chen Yi smiled twice.

  Chen Yi walked through the living room decorated in 90s style and came to the backyard.

  The old man sat under a big persimmon tree, basking in the sun. He slowly rocked his chair and beckoned: "A Yi has come, is Jiang Da good?"

  "Not bad." Chen Yi knew that Jiangning University was Old Master's favorite university, so he said a few good things before saying: "I came this time to ask for your opinion."

  "Oh?"

  Chen Yi licked his lips, and then went on to talk about the Golden Source company he had established, basically repeating what he had told his parents. He paused, then continued, "I was thinking, what kind of American politician could help me with administrative monopolization?"

  Unlike many elderly people, Old Man Chen is one of the most worldly-wise Chinese people.

  ……

  Apart from the number of words, note:

  About the time of the subway: 1. The time background of this book is in 2003, without any time-space shuttle.

  2. The protagonist, whether in Jiangning, New York or Paris, is only physically displaced and not changed over time, still daytime due to the time difference.

  3. In the Kingdom of Saint Qiao, it is possible to have 3 to 4 times the time amplification because of the great distance. According to the Tun theory, this is like astronauts flying to a distant galaxy at extremely high speeds, approaching the speed of light, so the flow of time for the astronauts slows down. However, from the perspective of the entire cosmic system, there is no change.

  For the same reason, Chen Yi will not grow old because of this.