A New York Stock Exchange technical error triggered trading halts in shares of Chipotle, Berkshire and others Monday morning.
The big picture: The glitch comes a week after U.S. stock exchanges switched to one-day settlement. However, the FT cited a person familiar with the matter as saying Monday's issue was not connected to that change.
Context: Investors and regulators have been on alert for heightened trade failures and other issues after exchange operators made the settlement move last Tuesday, Reuters reported.
- The change is meant to comply with a U.S. SEC rule change that requires investors to transfer their securities one business day after trades have been agreed to, instead of two.
The NYSE initially confirmed Monday morning it was "investigating a reported technical issue."
- Just after 11am ET it announced that the issue stemmed from price-bands published by the Consolidated Tape Association. It was resolved by about 11:45 am and trading went back to normal.
Zoom in: At 11am ET it listed over 60 stocks as halted, citing "Limit-up, Limit down" (LULD) pauses, the mechanism designed to stop excess volatility in a single stock.
- Up to 40 of those were connected to the technical issue, a NYSE spokesperson said later in a statement to Axios.
What they're saying: "Shortly before noon, the issue was resolved and trading in the impacted stocks resumed," the statement said. "The NYSE is reviewing potentially impacted trades."
Worth noting: It was a volatile morning for GameStop shares, the stock largely credited with prompting discussion of the settlement rule change, known as T+1, back in 2021.
- The company's shares were up more than 70% at the open Monday before a volatility halt, as investors speculated that meme stock trader Keith Gill, known online as Roaring Kitty, could have a large position in the stock.
This story has been updated with additional information throughout.
