After glitch, NYSE has canceled erroneous Berkshire Hathaway trades and other stocks

The New York Stock Exchange announced that it would cancel all erroneous trading after a technical problem led to the suspension of dozens US listed companies and exchange traded fund trades.

On Monday morning, Class A shares of Warren Buffett’s Berkshire Hathaway fell 99 percent before the trading pause was implemented. This halts all trading in securities listed on exchanges at prices outside certain price bands.

LSEG data showed a few trades for $185.10 a share. This is compared to a previous price $621,484. After the markets closed on Sunday afternoon, NYSE announced that all trades below $603,718.3 will be cancelled.

Berkshire A shares closed Monday at $631.110, an increase of 0.6 percent for the day. Berkshire B-class shares traded as usual throughout the morning.

In the past, traders have claimed compensation for “clearly incorrect” trades. Transactions at prices that were caused by technical glitches also resulted in cancellations. Last year, NYSE had to cancel thousands of trades due to a human error that caused hundreds of stocks to start trading without the correct limit up/limit down bands.

The trading halts on Monday began shortly after the opening of the market. NYSE reported that the problem was resolved by noon local time and that all stocks had resumed trading.

The exchange blamed a “technical issue with industry-wide pricing bands published by [Consolidated Tape Association Security Information Processor]”.

The CTA is a group of major exchanges which manages the distribution of trading data among different venues. The CTA supervises a part of the SIP which processes and consolidates information.

CTA stated that Monday’s issues “may have been caused by a new release of software” which was implemented over the weekend. A part of the SIP, led by Nasdaq, was not affected.

Barrick Gold and the restaurant chain Chipotle were also affected. Bloomberg data showed multiple Barrick Gold trades at 25 cents a share compared to $17 per share previously.

The exchange stated that it was reviewing other possible erroneous NYSE listed trades.

Berkshire took longer than most to resume trading.

This incident occurred just days after an index provider S&P Global data feed problem caused live figures, including those for the S&P 500, to vanish from investor screens for approximately one hour.

Recent trading problems follow last week’s move to reduce the time for finalising transactions on US exchanges. This is known as T+1 in the industry. The person who was familiar with the outage on Monday said that the problem was not related to the update.

Intercontinental Exchange shares, the parent company of NYSE, fell 0.2 percent on Monday.

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