The New York Stock Exchange (NYSE) swiftly addressed a technical issue on Monday (June 3) that caused incorrect displays of share price information for a variety of companies listed on the exchange.
The glitch, which the exchange attributed to a problem with limit up-limit down (LULD) bands, caused the Class A shares of Warren Buffett's Berkshire Hathaway (NYSE:BRK.A) to plummet nearly 100 percent during morning trading.
Major miner Barrick Gold (TSX:ABX,NYSE:GOLD) was also affected, as was NuScale Power (NYSE:SMR).
GameStop (NYSE:GME) was impacted too, although the NYSE issue wasn't the only event moving its share price on Monday. The well-known meme stock soared after Keith Gill, known on social media as "Roaring Kitty," posted on Reddit (NYSE:RDDT) that his position in the company now stands at 5 million shares.
The LULD mechanism is designed to mitigate extraordinary market volatility and extreme price movements in individual securities. It operates by preventing trading from occurring outside specific price bands, which are continuously updated throughout the trading day based on the average reference price of the security over the preceding five minutes.
As many as 50 NYSE stocks were affected, with trades in these companies halted for about half an hour.
"It's erroneous trade reports and will get taken from the tape," Joe Saluzzi, co-head of equity trading at Themis Trading, told Reuters. "It's somebody having a glitch whether its the exchange or a market maker."
The impacted stocks have since resumed trading, or are in the process of doing so.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.