Customers Face Steep Losses as Orders Filled at Full Price During Trading Disruption
- Interactive Brokers suffers $48 million loss due to NYSE glitch
- Customers’ orders for Berkshire Hathaway Class A shares filled at full price instead of discounted rate
- Brokerage firm evaluating legal action to recover losses
A recent New York Stock Exchange glitch caused some investors to purchase Berkshire Hathaway Class A shares at full price instead of the expected discounted rate. Interactive Brokers, one of the affected brokers, is evaluating legal action to recover the $48 million loss incurred from the incident. The NYSE attributed the issue to a software update that led to abnormal data display and trading halts for around 40 securities.
Factuality Level: 8
Factuality Justification: The article provides accurate information about a recent trading glitch on the New York Stock Exchange involving Berkshire Hathaway Class A stock and how some investors were affected by it. It includes quotes from Interactive Brokers and Charles Schwab Corp., as well as details about the cause of the glitch and its impact on the market.
Noise Level: 6
Noise Justification: The article provides information about a specific event involving a trading glitch on the New York Stock Exchange and its consequences for some investors who tried to buy Berkshire Hathaway Class A stock at a discounted price. It also mentions the actions taken by Interactive Brokers and other brokerages to help their customers. However, it lacks in-depth analysis or exploration of long-term trends or possibilities related to the event.
Public Companies: Interactive Brokers (IBKR), Berkshire Hathaway (BRK.A), Charles Schwab Corp. (SCHW)
Key People:
Financial Relevance: Yes
Financial Markets Impacted: Interactive Brokers, Berkshire Hathaway Class A stock, NYSE
Financial Rating Justification: The article discusses a trading glitch on the New York Stock Exchange that affected the pricing of Berkshire Hathaway Class A stock and how Interactive Brokers is working to remedy the situation for its customers. This impacts financial markets and companies involved.
Presence Of Extreme Event: a
Nature Of Extreme Event: Financial Crisis
Impact Rating Of The Extreme Event: Severe
Extreme Rating Justification: This article describes a financial crisis caused by a trading glitch on the New York Stock Exchange, which led to investors buying Berkshire Hathaway shares at full price instead of the expected discount. The impact was severe for those affected, with large losses and negative margin balances incurred as a result.
www.marketwatch.com 
