NYSE Faces Lawsuit Over $48 Million Loss Due to Trading Mishap

  • Interactive Brokers suffers $48 million loss due to Berkshire Hathaway trading glitch
  • NYSE halts trading of Berkshire Hathaway shares after a 99% price drop
  • Price of Berkshire Hathaway’s Class A shares briefly plunged to $185 from $622,0000
  • Interactive Brokers files ‘clearly erroneous execution’ petition with NYSE and other exchanges
  • NYSE denies Interactive’s claims for compensation
  • Interactive reimburses clients directly as a customer accommodation

Online brokerage firm Interactive Brokers has suffered a $48 million loss due to a glitch at the New York Stock Exchange that caused Berkshire Hathaway’s share price to plummet by over 99%. The exchange halted trading of the stock, but the anomalous price drop spread across social media. Interactive Brokers filed a ‘clearly erroneous execution’ petition with the NYSE and other exchanges, stating that the NYSE didn’t address the substantial order imbalance during the pause. The NYSE denied Interactive’s claims for compensation. As a result, Interactive reimbursed clients directly and may consider legal action against the stock exchange.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the $48 million loss incurred by Interactive Brokers due to a glitch at the New York Stock Exchange. It explains the sequence of events that led to the loss and mentions the steps taken by Interactive Brokers to recover the money, including filing a petition and considering legal action against NYSE.
Noise Level: 3
Noise Justification: The article provides relevant information about a specific incident involving Interactive Brokers and the New York Stock Exchange, with some details on the financial impact of the glitch. However, it lacks in-depth analysis or exploration of broader implications for the market or similar incidents. It also does not offer much actionable insight or solutions to prevent such issues in the future.
Public Companies: Interactive Brokers (N/A), Berkshire Hathaway (N/A), New York Stock Exchange (N/A), Intercontinental Exchange (N/A)
Key People:

Financial Relevance: Yes
Financial Markets Impacted: New York Stock Exchange (NYSE), Interactive Brokers, Berkshire Hathaway
Financial Rating Justification: The article discusses a financial loss incurred by Interactive Brokers due to a glitch at the NYSE that impacted the price of Berkshire Hathaway’s shares and led to financial transactions. This affects both the company and the stock exchange, as well as traders who placed buy orders during the anomalous market.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Financial Crisis
Impact Rating Of The Extreme Event: Major
Extreme Rating Justification: This event caused a significant financial loss for Interactive Brokers and disrupted the trading of Berkshire Hathaway’s shares, leading to confusion and potential losses for other traders. Although there were no physical consequences, the economic impact and long-term legal implications make it a major event.

Reported publicly: www.barrons.com