(Reuters) – Interactive Brokers on Wednesday disclosed a $48 million loss due to a New York Stock Exchange glitch earlier this month that at one point showed a 99% drop in the stock prices of some companies, including Warren Buffett’s Berkshire Hathaway. .
Interactive said that the brokerage company submitted claims to the New York Stock Exchange to compensate it for these losses, but the exchange rejected its request.
Outages caused by software and hardware glitches have become common as trading moves from floors and pits to electronic systems, but glitches can roil markets and frustrate investors. In some cases, they can also invite regulators for audits and disputes with brokers.
Interactive said its losses resulted from its clients trying to take advantage of the massive decline in Berkshire’s stock price.
Clients rushed to buy Berkshire Class A shares after the stock price fell from $622,000 to $185. They placed “buy” orders after trading in the stock stopped, hoping their trades would be executed at a price near $185.
However, after trading resumed, customer trades were executed at prices as high as $741,971.39, Interactive reported. The trading platform added that its request to breach trades completed at such “abnormal” high prices had been rejected by the New York Stock Exchange.
Interactive then acquired a “significant” portion of these deals. She added that she is considering her options, including resorting to the judiciary, but she does not expect the losses to have a material impact on her financial resources.
The New York Stock Exchange did not immediately respond to a Reuters request for comment. The exchange, owned by Intercontinental Exchange, attributed the outage to a technical issue earlier this month.
(Reporting by Niket Nishant in Bengaluru; Editing by Shailesh Kuber)
