The Crisis Unfolds

The pings on the chat keep coming in, but now, they’re different.

“That’s done, Wildone. Mine 3 vols over 1M XAU 20k vega USA Bank for the confo. What cross do you want?”

“Current spot fine mate.”

“I’m looking for more… want to double the ticket?”

“No thanks, mate.”

And that’s when it hit me. This is a full-blown crisis. The atmosphere on the floor shifted completely. Alarm bells were ringing in my head.

“Dazza, I’m getting lifted 3 vols over in 1 month and it’s bid on, mate.”

“What? 3 vols?”

“Yep, took my hand off… USA Bank.”

[Expletive]… looks like it’s going to go sideways. Better make the call.”

The next few minutes are a blur: complete run down on every desk position, management is updated, a strategy call is in motion, and the decision is clear: full lockdown. No new positions, check names on everything, and it does not matter who the counterpart is.

Panic buying hits the base and precious metals vol markets, screens light up like a Christmas tree, and the volume of chatter is overwhelming. Brokers are flooding the chat with RFQ’s. No more subtly, people have been told to close out vol positions at any cost.

“Mate, I need offers.”

“Where’s the level?”

“There isn’t one, it’s whatever you want to put on it.”

I know it’s only going to get worse.

Fast forward hours later… the crisis is unfolding, and I’m heading home. But that’s when the reflection hits: “This feels like just the beginning.”

The market meltdown had started, but I wasn’t sure anyone outside the trading floor knew what was coming. And that’s the eerie part.

“I’m heading home, Wildone”

“Sure mate”

“Feels like this is just the beginning”

“Yeah Dazza, I think you’re right mate.”

“Fancy a few cold ones?”

“Nah mate, I think its going to be a long few days ahead”

“Good shout, we’ll get out when Arsenal win this year”

“You’re [expletive] dreaming, Dazza. See you tomorrow”

“Cheers, Wildone”

My final recollection: standing alone in a nearly empty trading floor, staring out at the darkening sky below, wondering if anyone below had any idea of the storm that was brewing and coming their way.

The lessons learned: always do all you can to stay calm in a crisis, always be a solution provider in every situation and communicate effectively and efficiently. Core beliefs of ZKR to this day.