The bullish Liu had a good time when the price per ton rose from more than $65,438+0,000 in early 1999 to $3,000 in early 2004. Its well-known domestic and foreign copper futures reverse arbitrage (long domestic copper futures and short London copper futures) trading technology, after the copper incident of the State Reserve was finally handled, also retained a profit of 654.38+0.89 billion yuan for the State Reserve in the domestic futures account.
Early 2004: Liu backhand chop.
After the copper price exceeded $3,000 per ton in early 2004, Liu, who shorted backhand, began to have nightmares. After the copper price plunged 10% in June of that year, Liu decided to gamble in order to make a comeback, and sold a large number of call options that exceeded his authority in his structured option portfolio.
After the National Day in 2005: Leave a suicide note to escape.
After the National Day in 2005, the copper price of LME exceeded $4,000 per ton. Faced with a large number of call options to be executed at the end of the year, Liu, who had collapsed psychologically, chose to escape again in June 5438 +2005 10, and rumors left a suicide note. At this time, he holds an open position of 200,000 tons of copper futures and options in London. According to the data identified by the court, the book loss at that time had reached $606 million.
At the end of March 2008: He was sentenced to seven years' imprisonment at first instance.
Liu was sentenced to seven years' imprisonment at the end of March 2008. Due to liquidation, delay, physical delivery and other ways, the final loss determined by the court is still as high as 920 million yuan.