#StockMarket #GlobalStock #Nyse #BuffettsFund⠀
👉 Flash Crash NYSE or money in the darkness⠀
A glitch in the global stock exchange brought the stock trading to a halt, which made Warren Buffett's opponents happy in the short term: the most expensive securities of Berkshire Hathaway Inc (BRKa) were worth only $185 (-99.7%) at the moment. Now, the NYSE says the stock's price range has been resolved, but the financial and legal implications are still being analyzed.
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In addition to Buffett's fund, Barrick Gold, Nuscale Power, and Chipotle Mexican Grill suffered a serious shock. The crypto market also suffered - the falling major indices pulled down BTC, which at that moment was just trying to gain a foothold above $70K. Last Thursday, the data on the main U.S. stock indices "froze" for several hours due to problems at their supplier – S&P Dow Jones Indices, but the failure did not affect individual stocks.
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How many total stocks were affected by the problem is unclear. The NYSE did not specify the cause of the technical problems either. Major exchanges use the services of Consolidated Tape Association to provide joint real-time stock quotes. It was this organization after the message NYSE told about an earlier failure, because of which it had to switch to its emergency center.
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Recall: Since May 28, the U.S. exchanges have switched to a single trading mode (T+1) – settlements on concluded deals and asset delivery are carried out on the next trading day. In addition to the U.S., the exchanges of Canada and Mexico also switched to the new trading mode. The return of the (T+1) mode was supposed to speed up settlements and reduce risks, but so far, we have observed only local failures in the system.
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The transition to (T+1) is an actual trend for exchange trading. India completed the transition in January 2023, and China switched to (T+1) in March 2024. Australia and Europe are still only discussing the issue.
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So, the regular Flash Grash season can be considered open. What do you think?
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Profits to y’all!