Berkshire Hathaway: NYSE to cancel erroneous trades in Warren Buffett business after incident
What was the specific technical issue reported by the NYSE that caused Berkshire Hathaway's stock price to drop to $185 a share?
The specific technical issue reported by the NYSE that caused Berkshire Hathaway's stock price to drop to $185 a share was related to a problem at the Consolidated Tape Association (CTA), which provides real-time information about quotes and trades on the exchange. The CTA oversees part of the Securities Information Processor (SIP) which consolidates all protected bid/ask quotes and trades into a single data stream. The CTA experienced problems with price banding which may have been related to a new software release on SIP. As a result, the CTA reverted to the previous version of the software. This issue led to the NYSE placing halts on certain trades, including Berkshire Hathaway's Class A stock. The technical issue has now been resolved, with all tickers trading as normal.
How long did the technical error that affected Berkshire Hathaway's stock price last?
The technical error that affected Berkshire Hathaway's stock price lasted for around an hour and a half.
What action did the NYSE take regarding the trades executed at the erroneous stock price of Berkshire Hathaway?
The NYSE took swift action to cancel or "bust" all the erroneous trades of Berkshire Hathaway stock that were executed at the incorrect price of $185 per share. The decision was made following a technical issue on the stock exchange which caused the global conglomerate's stock price to fall significantly from its previous closing price of over $620,000. The NYSE identified the issue as being related to a problem at the Consolidated Tape Association (CTA), which provides real-time information about quotes and trades on the exchange.