Brokerage firm Interactive Brokers revealed this week that the recent trading issues at the New York Stock Exchange caused it to incur a $48 million loss.
The NYSE faced a software glitch in early June, which temporarily caused the shares of high-profile companies like restaurant chain Chipotle and Warren Buffett’s Berkshire Hathaway to plunge more than 99%. For example, Berkshire’s Class A stock went from $622,000 per share to $185.
After noticing the glitch, NYSE halted the trading and canceled all the trades that took place during that time. However, some traders placed a “Buy” order after the trading was stopped, expecting to get the shares at the discounted price. Once the trading resumed, their orders were processed at an inflated price that went all the way to $741,000 in some cases.
Interactive Brokers took over a “substantial portion of the trades” as a way to accommodate their customers after NYSE declined to cancel them and ended up with a $48 million loss. NYSE only elected to cancel trades that were at or below $603,718.3 per share.
According to Interactive Brokers’ statement, the firm 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.”