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Traders who scooped up Warren Buffett’s Berkshire Hathaway shares at a massive $620,000 discount during glitch will have their deals canceled by the NYSE

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Mr Long Term wrote a column · Jun 5 23:35
Traders who scooped up Warren Buffett’s Berkshire Hathaway shares at a massive $620,000 discount during glitch will have their deals canceled by the NYSE
Investors who purchased shares in Warren Buffett’s Berkshire Hathaway yesterday at a huge discount will see their trades canceled following a technical issue on the stock exchange.

On June 3, a data glitch led the global conglomerate’s stock price to fall to $185 a share, having previously closed at over $620,000. The drop meant a more than 99% discount on the Warren Buffett–led company.

This means a trader who snapped up just $925 worth of the stock at the rock-bottom price would now see that investment worth over $3 million today.While it hasn’t been confirmed how many people purchased the Class A stock during the technical error—which lasted for around an hour and a half—the New York Stock Exchange (NYSE) has swiftly undone all their trades.

In an update posted at 9 p.m. last night, NYSE said it would “bust” all the “erroneous” trades of Berkshire Hathaway stock at or below $603,718.30 a share.

The issue, the exchange added, is related to a problem at the Consolidated Tape Association (CTA), which provides real-time information about quotes and trades on the exchange. The CTA oversees part of the Securities Information Processor (SIP) which consolidates all protected bid/ask quotes and trades into a single data stream.The CTA said it experienced problems with price banding which “may have been related to a new software release” on SIP. As a result, the CTA has reverted to the previous version of the software. The CTA did not immediately respond to Fortune’s request for comment.

During the blip, the NYSE placed halts on certain trades; it will now seek to determine which are erroneous and thus eligible to be canceled. The technical issue has now been resolved, it added, with all tickers trading as normal.

Traders who didn’t hop on a discounted Berkshire Hathaway stock but did buy heavily discounted shares in other brands will also be subject to having their trades struck off—with the ruling not eligible for appeal.Other tickers that were impacted include American restaurant chain Chipotle (CMG), mining company Barrack Gold Corporation (GOLD), and meme stock darling GameStop (GME).

For Berkshire Hathaway, the good news is that its Class B Stock (BRK.B) was not impacted by the ticker problem, and its Class A stock closed at more than $631,000 a share.

Berkshire Hathaway did not immediately respond to Fortune‘s request for comment.
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  • 70638593 : I wonder if they will ever disclose who really made the trades to try and profit. I wonder if they will really cancel all trades. I bet all retail trades will get canceled. I have a huge suspicion that some big players made big trades.