N.Y. Stock Exchange Glitch—Causing Berkshire Hathaway To Tank—Cost Brokerage Firm $48 Million
Topline
Interactive Brokers—-one of the largest online trading platforms—lost an estimated $48 million after a glitch hit the New York Stock Exchange earlier this month, briefly causing Berkshire Hathaway’s shares to appear to lose nearly all their value, the firm said Wednesday, adding it is considering legal action to recoup the losses.
A representative for the NYSE declined to comment to Forbes. LightRocket via Getty Images
Key Facts
Some of Interactive Brokers’ clients submitted buy orders when trading was halted on June 3 for Berkshire’s Class A stock, which plummeted in value from about $620,000 to $185 because of the glitch, as buyers expected to take advantage of this “opportunity,” the brokerage said.
Those orders were filled at various prices as trading resumed about two hours later and the stock returned to its original price, including some that were completed as Berkshire’s shares reached a peak of nearly $742,0000, according to the brokerage.
Interactive Brokers said it filed petitions with the NYSE to cancel the trades completed at “anomalously high prices,” though the brokerage’s request was denied.
The firm said it will “consider its options” to recover the losses, including “any claims at law” against the NYSE or other “related entities.”
Interactive Brokers, which reported $132.2 billion in assets as of March, “does not believe” the losses will have any effect on its financial condition.
A representative for the NYSE declined to comment to Forbes.
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Forbes Valuation
Thomas Peterffy, chair and founder of Interactive Brokers, has an estimated net worth of $38.1 billion. He served as chief executive before stepping down in 2019.
Surprising Fact
Forbes briefly listed the net worth of Warren Buffett, Berkshire’s longtime chief executive, as losing $136 billion at the time. Berkshire’s Class A share price of $185.10 would have been its lowest level since 1979, according to FactSet. Buffett is the eighth-wealthiest person in the world with a net worth of $134.5 billion, according to our latest estimates.
Key Background
The NYSE told Forbes earlier this month the “technical issue” that impacted trading was caused by inaccurate share price information provided by Consolidated Tape Association. The issue caused trading platforms and websites to incorrectly display losses for several companies, including Berkshire, Chipotle, GameStop and AMC, each of which had its stock halted. A cause of the glitch is not known, though the NYSE does not expect a cyber attack, a spokesperson told the Financial Times.
Further Reading
MORE FROM FORBESBerkshire Hathaway Stock No Longer Appears Down 100% As NYSE Fixes GlitchBy Derek Saul
