The opening ceremony features the American and Soviet delegates each vowing their side will win ("Diplomats"), The Arbiter insisting on a clean game ("The Arbiter"), and marketers looking to make a profit ("Hymn to Chess" / "Merchandisers"). During the increasingly intense match, Freddie suddenly throws the chessboard to the floor and storms out of the arena ("Chess #1"), leaving Florence to negotiate with Anatoly, Molokov, and The Arbiter ("Quartet"). Florence manages to arrange a meeting between the two players, after trading heated words with Molokov. It turns out that Freddie engineered the outburst in the hopes of extracting more money from his sponsor, an American sensationalist media company called Global Television, though Walter—the company's representative in Freddie's delegation—criticizes the stunt as ludicrous ("Florence and Molokov"). Florence later scolds Freddie, and they fight about the politics of the tournament until he viciously turns the argument toward her missing father, believed captured or killed by Soviet forces during the 1956 Hungarian Revolution ("1956: Budapest is Rising"). She laments the situation alone ("Nobody's Side") before heading off to the Merano Mountain Inn for the reconciliatory meeting she has scheduled between Freddie and Anatoly ("Der Kleine Franz"). Freddie does not immediately turn up, though, leaving Anatoly and Florence awkwardly alone together; however, they eventually embrace as romantic feelings arise before being finally interrupted by Freddie, who was working out new financial terms with Global TV ("Mountain Duet").