Berkshire Hathaway Stock Plummets 99.9% Due to NYSE Technical Issue

A technical glitch at the NYSE caused incorrect stock prices, including a 99.9% drop in Berkshire Hathaway A-shares, and halted trading for multiple companies.

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NYSE Technical Issue Causes Stock Price Errors

On Monday morning, a technical problem at the New York Stock Exchange (NYSE) led to incorrect stock prices and trading halts for several companies. Among them, Warren Buffett's Berkshire Hathaway (BRK-A) A-shares experienced a staggering 99.9% drop.

Impact on Berkshire Hathaway Shares

Berkshire Hathaway's (BRK-B) B-shares, which are valued at a fraction of the A-shares, dropped by about 1.1% but were largely unaffected by the glitch. However, both A-shares and B-shares saw significant volatility throughout the trading day, with A-shares finally resuming trading around 11:35 a.m. ET.

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NYSE Explanation of the Glitch

In a statement issued shortly after 11 a.m. ET, the NYSE clarified that a technical issue with industry-wide price bands published by the CTA SIP triggered halts in several stocks listed on the NYSE Group exchanges.

Role of Price Bands

Price bands serve as mechanisms designed to prevent extreme fluctuations in a stock's price. While the issue disrupted trading for a period, the NYSE assured investors that the affected stocks have since reopened or are in the process of reopening, and the glitch has been resolved.

Other Affected Stocks

Chipotle (CMG) shares were briefly halted about 14 minutes after the market opened, despite experiencing only a 1.2% decrease. Similarly, trading for Horace Mann Educators (HMN) and Franco-Nevada Corp (FNV), a company focused on gold royalties, was also temporarily halted.

Recent NYSE Technical Issues

This technical glitch occurred shortly after live calculations for the S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) were unavailable for about an hour, highlighting recent technical challenges faced by the NYSE.

SEC Rule Changes

In addition to these technical issues, about a week ago, the NYSE began settling stock trades in one business day to comply with a new rule from the Securities and Exchange Commission. This rule change reduced the time between a trade and its settlement from two days to one day.

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