A technical glitch at the New York Stock Exchange caused stock prices for several companies, including Warren Buffett’s Berkshire Hathaway, to be displayed incorrectly.
Trading in Buffett’s company’s shares was halted after stock exchange readings showed shares in the company had fallen 99%.
Shares of other companies, including Chipotle, Barrick Gold and NuScale Power, were also halted from trading due to the volatility.
It turns out that Barrick Gold’s shares had fallen by more than 98% before the glitch caused trading to be halted.
The stock exchange said Monday it was investigating the glitch, which affected dozens of stocks. The NYSE said the problem appears to have been resolved and trading in the affected stocks resumed at 11:22 a.m. Eastern time.
The glitch does not appear to have affected the market as a whole.
The limit up/down mechanism is intended to prevent abnormal market fluctuations and extreme price fluctuations of individual securities.
It prevents trading outside of a specific price range that is continually updated throughout the trading day.
The price band for each security is set at a percentage level above and below the security’s average reference price over the preceding five minutes.
“This was a false trade report and will be removed from the records,” said Joe Saluzzi, co-head of equity trading at Themis Trading.
“Someone is having problems, whether it’s an exchange or a market maker.”
Technical problems at the exchanges could hit markets, erode trader confidence and invite scrutiny from U.S. securities regulators.
This is a developing story and will be updated.
