NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

Interactive Brokers realized losses of $48 million on Berkshire Hathaway trade issue

Published 27/06/2024, 12:22 am
© Reuters.
IBKR
-
BRKa
-

Interactive Brokers (NASDAQ:IBKR) experienced losses of approximately $48 million, including on certain hedge transactions, after the New York Stock Exchange (NYSE) denied its claims for compensation related to the June 3 trading disruption.

The NYSE, in conjunction with other U.S. stock exchanges, decided not to act on Interactive Brokers LLC’s petition concerning clearly erroneous executions.

The petition addressed market buy orders on June 3, after about 9:50 am EDT, when the price of Berkshire Hathaway (NYSE:BRKa) Class A (BRK.A) shares abruptly dropped from around $622,000 to about $185 per share.

Interactive Brokers chose to assume a substantial portion of these trades to accommodate its customers.

“The 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,” Interactive Brokers said in a notice.

It also does not believe that the losses will leave a material impact on its financial condition.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.