Jun 26, 2024
Interactive Brokers Books $48 Million Loss on NYSE Glitch
Bloomberg News
,![Monitors display stock market information on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Tuesday, Sept. 7, 2021. Equities retreated from near-record highs as U.S. trading resumed after the Labor Day holiday. Photographer: Bloomberg/Bloomberg, Photographer: Bloomberg/Bloomberg Monitors display stock market information on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Tuesday, Sept. 7, 2021. Equities retreated from near-record highs as U.S. trading resumed after the Labor Day holiday. Photographer: Bloomberg/Bloomberg](/polopoly_fs/1.2089784.1719417744!/fileimage/httpImage/image.jpg_gen/derivatives/landscape_620/monitors-display-stock-market-information-on-the-floor-of-the-new-york-stock-exchange-nyse-in-new-york-u-s-on-tuesday-sept-7-2021-equities-retreated-from-near-record-highs-as-u-s-trading-resumed-after-the-labor-day-holiday-photographer-bloomberg-bloomberg.jpg)
(Bloomberg) -- Interactive Brokers Group Inc. took a $48 million hit after a New York Stock Exchange trading disruption this month and is considering its options to recover the money, including possible legal action.
The brokerage booked the loss after a June 3 software update impacted trading at the exchange, causing shares of companies including Warren Buffett’s Berkshire Hathaway Inc. to appear to plunge. That prompted its customers to submit buy orders, some of which were filled at much higher prices, Interactive Brokers said in a statement Wednesday.
The Greenwich, Connecticut-based company is “continuing to consider its options with respect to recovery of these amounts, including any claims at law it could assert against NYSE or related entities,” it said.
A representative for the NYSE declined to comment.
The glitch led the NYSE to erroneously halt trading on about 40 stocks and display odd trades showing a 99% drop in companies including Berkshire’s Class A stock, which has traded at more that $600,000 a share recently. The NYSE later said it would cancel erroneous trades in Berkshire’s Class A stock below about $604,000. When the stock resumed trading later in the morning, it snapped back to its much-higher price and briefly traded above $741,000.
Retail brokerages Robinhood Markets Inc., Charles Schwab Corp. and Morgan Stanley’s ETrade didn’t immediately respond to requests for comment on the impact of the disruption.
--With assistance from Katherine Doherty and Bre Bradham.
(Updates with NYSE no comment in fourth paragraph)
©2024 Bloomberg L.P.