NYSE technical glitch shakes Wall Street, multiple stocks show nearly 100% plunge
NYSE halted trading due to technical issues causing abnormal stock prices. Berkshire Hathaway Inc. (Class A shares) saw a temporary 99.97% plunge. NYSE has resolved the problem and trading has resumed. This incident highlights the necessity of modern and automated trading systems in a fast settlement environment. Financial institutions should adapt to T+1 settlement rules, with some considering adopting a T+0 operating model. Furthermore, global trading settlement rules are shifting towards T+1, placing higher demands on exchange operations
According to the Zhitong Finance and Economics APP, on Monday, due to a malfunction in the "CTA SIP" system processing stock price range information, multiple stocks on the New York Stock Exchange displayed abnormal prices, leading to trading being forced to halt. This included the highest-priced stock on the market, Berkshire Hathaway Inc. Class A (BRK.A) shares. Additionally, stocks such as Bank of Montreal (BMO.US) and Barrick Gold Corporation (GOLD.US) experienced price drops of over 98%, with trading temporarily halted. The NYSE has stated that the technical issue has been resolved, and all affected stocks have resumed trading.
During the chaos, Berkshire Hathaway Inc. Class A shares briefly plummeted to $185.10, a decrease of 99.97%, with approximately 50 shares traded. The NYSE has indicated that these trades will be canceled.
This is not the first recent occurrence of technical malfunctions on Wall Street. Last week, S&P Dow Jones Indices stated that due to a technical issue, real-time prices for the S&P 500 Index were not updating during trading later on Thursday morning.
Currently, global trading settlement rules are transitioning from T+2 to T+1, meaning trades must settle on the first working day after completion, placing higher demands on exchange operational efficiency. Industry observers point out that this technical malfunction highlights the necessity of modernized and automated trading systems in a fast settlement environment.
Gabino Roche Jr, co-founder of Saphyre, emphasized the challenges financial institutions face in adapting to the T+1 settlement rule and suggested institutions consider adopting a T+0 operational model to ensure full compliance. He also noted that many large institutions have begun increasing human resources to meet the new standard of completing trades within 24 hours