Announcement regarding the handling of the incident involving the purchase of BRK.A with market orders during abnormal market conditions on the NYSE.
Dear Clients:
Due to a technical failure in the software upgrade responsible for quote processing at the New York Stock Exchange, multiple stocks including Berkshire Hathaway experienced significant volatility. Some clients submitted market orders to buy $Berkshire Hathaway(BRK.A.US), which led to a backlog of buy orders, driving the price above $700,000 per share. Many users purchased at market price, and after the buy orders were absorbed, the price dropped to $620,000 per share, resulting in substantial losses for some users. Subsequently, Longbridge Securities found that not only did some users incur significant losses, but others also made profits of nearly $200,000 in a single trade.
In response, Longbridge Securities has proposed the following solutions:
- For clients who suffered losses, we will proactively cancel the trades and cover all losses incurred from purchasing BRK.A on June 3, 2024.
- For clients who profited, no cancellations or interventions will be made.
BRK.A will be set to non-tradable during the U.S. trading session on June 5, and all trade cancellations will be completed within 24 hours.
By the pre-market session on June 6, all affected client accounts will be restored to normal status.
FAQ
Q: My account is among those with canceled trades. Will this affect my other stocks besides BRK.A?
A: Only trades related to BRK.A on June 3 will be canceled.
Q: I bought BRK.A on June 3 at $630,000 and sold it at $700,000. Will my trade be rolled back?
A: The cancellation and compensation only apply to accounts that incurred losses. No intervention will be made for profitable accounts.
Q: I’ve already closed my BRK.A position myself. Will my losses be covered?
A: We will compensate for losses incurred from trading BRK.A on June 3.
In the face of market volatility caused by exchange technical failures, we chose not to shift blame to external factors but instead prioritized our clients' interests, actively seeking solutions to protect investors' rights.
This decision reflects our commitment to standing with investors who trust Longbridge. In times of risk, we will always stand in front of our users—this is the responsibility and warmth of a leading brokerage platform.
Trust us. We will prove through actions that Longbridge Securities is your solid investment partner. Choose us, and invest with confidence! We thank every investor who has grown with us—your trust and support strengthen our resolve on this path.
Longbridge Securities will always stand with our users.
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