A trading glitch on the New York Stock Exchange earlier this month has cost Interactive Brokers $48mn after it covered trades in Warren Buffett’s Berkshire Hathaway conducted as the price plunged 99 per cent.
The brokerage revealed the hit — which is not material to its earnings — on Wednesday and said it was considering its options “including any claims at law it could assert against NYSE”.
Berkshire Hathaway’s A shares were among several that plummeted unexpectedly on June 3, leading to trading halts at the exchange. The conglomerate’s shares tumbled to $185 from $622,000. The shares then rocketed as high as $741,941 when trading resumed almost two hours later.
The exchange said later on the day of the glitch that it would cancel erroneous trades.
Interactive Brokers, founded by billionaire Thomas Peterffy, on Wednesday said that despite its prompt flagging of erroneous deals, NYSE had declined to “bust” or cancel its trades.
NYSE, owned by Intercontinental Exchange, declined to comment.
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