The New York Stock Exchange recently experienced a technical issue that led to trading halts for several stocks. Fortunately, the problem has been resolved, and all affected stocks have reopened for trading. The incident, which occurred about 15 minutes into the trading session, resulted in the halting of dozens of stocks, some of which displayed unusual stock prices.
One of the most notable cases was Berkshire Hathaway, the renowned holding company managed by Warren Buffett. During the disruption, the Class A shares of Berkshire Hathaway were briefly listed at an inexplicable price of $185, significantly lower than their typical value of over $600,000. This anomaly, representing a 99% drop in value, raised concerns among market participants.
Following the technical glitch, the New York Stock Exchange confirmed that the affected stocks had resumed trading, and all systems were functioning normally. The exchange attributed the issue to a malfunction related to the industry-wide data used for the limit up limit down mechanism, a safeguard that triggers trading pauses when stock prices deviate significantly.
Despite the exchange's explanation, some experts, such as market structure analyst Joe Saluzzi, expressed skepticism about the official account, citing inconsistencies in the trades observed during the disruption. However, the exchange clarified that there was no evidence linking the incident to a cybersecurity breach, as confirmed by a senior banking executive familiar with the situation.
While the exact cause of the technical problem is still being investigated, the New York Stock Exchange reassured investors that the incident was not indicative of a cyber attack. The prompt resolution of the issue and the resumption of normal trading operations have helped restore confidence in the market's stability.
