The New York Stock Exchange (NYSE) halted trading for 28 securities due to a technical issue. This disruption impacted the trading of Berkshire Hathaway, Barrick Gold, Nuscale Power, among other companies.
What happened?
The New York Stock Exchange (NYSE) explained that the technical issue was linked to the upward and downward limit bands, devices employed to halt trading in stocks showing extreme volatility. These bands are fundamental tools to preserve market stability and prevent abrupt fluctuations that may disrupt stock trading.
The suspension was a precautionary measure to investigate and address the incident. After a few hours, the NYSE announced that stock trading had returned to its normal state.
All of this occurs within the context of recent changes in settlement times, which have been reduced from two days to one for stock trades in the United States.
Review of Technical Issues in Global Stock Exchanges
The NYSE and other global exchanges have experienced similar events in different years due to technical issues. Below are some of these incidents:
Limited Impact and Investor Protection
These issues did not have a significant impact on the major indices of the New York Stock Exchange. This is partly due to measures implemented by the U.S. Securities and Exchange Commission (SEC); following the System Compliance and Integrity Regulation, which protects investors from possible technical failures or cyber attacks.
At Numa Americas Corp, we conduct constant monitoring of the market and the mechanisms that provide security to investors.
