A technical issue on Monday caused Berkshire Hathaway’s A-class shares to appear to plummet nearly 100% on the New York Stock Exchange (NYSE) during the morning trading period. The glitch also affected Barrick Gold and Nuscale Power, leading to a halt in trading. By 11:45 a.m. ET, the NYSE announced that the issue was resolved, and normal trading resumed.
NYSE Clarifies the Technical Issue on Berkshire Hathaway
The NYSE attributed the problem to incorrect price-bands published by the Consolidated Tape Association (CTA). This organization provides real-time stock quotes to major exchanges. The CTA reported a malfunction in the limit up and limit down price bands, intended to manage market volatility, from 9:30 a.m. to 10:27 a.m. ET. They suspect a new software release caused the issue and plan to revert to the previous software for the next trading session.
The glitch impacted 40 stocks, including notable names like Chipotle Mexican Grill and Bank of Montreal. The NYSE Group Equities Exchange later announced that erroneous trades in several securities, including Berkshire Hathaway’s A-shares, would be canceled. Less than 4,000 trades were recorded for Berkshire’s A-class shares before trading was halted.
Historical Perspective and Market Impact
Berkshire Hathaway’s A-class shares typically carry one of the highest price tags on Wall Street. Last week, they were priced at about 45% more than the median U.S. home price. Warren Buffett, the largest shareholder, has never split the stock, aiming to attract long-term investors. The shares hit an all-time high of $634,440 on March 28.
Despite the technical glitch, the value of the major market averages remained unaffected. The incident serves as a reminder of the vulnerabilities within Wall Street’s central exchanges and data providers. Similar errors include a CME index data freeze last week and a Nasdaq system error in December.
Berkshire’s B-class shares, intended for smaller investors, continued trading during the halt and ended the day slightly up. The NYSE’s swift resolution prevented significant market disruption, showcasing the importance of robust systems and quick response mechanisms.
The Oracle of Omaha’s steadfast investment strategy, despite technical hiccups, keeps Berkshire Hathaway a pillar of stability in the financial world. As exchanges navigate these challenges, maintaining investor confidence remains paramount.
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