FMP
NYSE Glitch Causes Wild Swings and Trading Halts
Jun 4, 2024 7:52 AM - Parth Sanghvi
Image credit: Nick Chong
A technical issue at the New York Stock Exchange (NYSE) caused temporary chaos on Monday, triggering massive swings and trading halts for several companies.
Berkshire Hathaway and Barrick Gold Take the Brunt
The glitch primarily impacted Berkshire Hathaway (BRKa) and Barrick Gold (GOLD), with their share prices displaying erroneous drops of nearly 99% and 98%, respectively. Thankfully, these price movements were not real and trading was halted to prevent further disruption.
Resolution and Review
The NYSE, owned by Intercontinental Exchange (ICE), identified and resolved the technical problem by late morning, allowing trading in affected stocks to resume. This incident follows another glitch last Thursday that affected real-time data for major indexes.
Canceling Erroneous Trades
To ensure market integrity, the NYSE announced the cancellation of all erroneous trades in Berkshire Hathaway's Class A shares that occurred during the glitch window. Similar cancellations are underway for impacted trades in Nuscale Power, Barrick Gold, Chipotle Mexican Grill, and other affected securities.
Overall Impact
While the glitch caused temporary confusion and volatility, the NYSE's swift intervention prevented significant damage. They are currently reviewing trades in roughly 40 securities to ensure accuracy.
Lessons Learned
This incident highlights the importance of robust safeguards within stock exchanges to prevent glitches and maintain market stability. Investors should be aware of the potential for temporary disruptions and focus on long-term investment strategies.
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