The New York Stock Exchange (NYSE) on Monday said that a technical issue that halted trading for some major stocks has caused Berkshire Hathaway to be down 99.97 percent has been resolved.
“Technical issue”
Intercontinental Exchange, the parent company of NYSE, has found no indication the glitch was caused by a cyberattack, a senior executive at a major bank in touch with ICE told CNN.
The NYSE spokesperson said that there was a “technical issue” with the industry-wide price bands triggering trading halts for up to 40 symbols listed on the NYSE exchanges. The NYSE said that the problems stemmed from the price bands published by the consolidated tape association.
The CTA said that there was an issue with limit up and limit down price bands, a mechanism meant to combat market volatility, between 9:30 a.m. and 10:27 a.m. ET. The issue may have been caused by a new software release, and the organization will revert back to the prior software program in its primary data center for Tuesday’s trading session, the CTA said.
NYSE resolves Issue
The NYSE has announced that it has decided to “bust,” or cancel, all “erroneous” trades for Berkshire between 9:50 am ET and 9:51 am ET at or below $603,718.30. The exchange said that the ruling was not eligible for appeal and indicated it could cancel other trades.
There were less than 4,000 recorded trades on the day for Berkshire’s A-class shares when trading was halted. Trading continued in the B-class shares, which were down less than 1% Monday morning. Both shared classes ended the day up less than 1%.
“We are monitoring the issue and engaging with market participants,” a spokesperson for the Securities and Exchange Commission told CNN.
“I’m not buying that explanation. That doesn’t make any sense to me,” said Saluzzi, a market structure expert and author of “Broken Markets.”
“All of a sudden, there was a $185 print. But there was nothing to take it down level by level, which you would expect to see,” said Saluzzi. “It makes no sense.”
