The glitch temporarily displayed a 99% drop in stock prices for several companies, including Warren Buffett's renowned Berkshire Hathaway.

In response to their losses, Interactive Brokers filed claims with the NYSE, seeking compensation for the financial impact caused by the glitch. However, the exchange has denied their request, leaving the brokerage to shoulder the full extent of the losses.

Technical malfunctions have become increasingly common as trading has transitioned from traditional trading floors to electronic systems. While these glitches can disrupt markets and frustrate investors, they can also attract the attention of regulators and lead to disputes with brokers.

Interactive Brokers attributes their losses to clients attempting to capitalize on the steep drop in Berkshire Hathaway's stock price. As the price plummeted from $622,000 to a mere $185 per share, customers hurriedly placed "buy" orders in anticipation of securing shares at the lower price point. These trades were made after trading in the stock was halted, with the expectation that the trades would be fulfilled near the $185 mark.

However, once trading resumed, the clients' orders were executed at prices as high as $741,971.39 per share, significantly higher than anticipated. Interactive Brokers requested that these trades, which were completed at abnormally high prices, be invalidated. Unfortunately, the NYSE rejected their request, leaving the brokerage to handle the fallout.

To mitigate their losses, Interactive Brokers assumed control over a significant portion of the trades that were affected by the glitch. The company is currently considering its options, including legal recourse, but maintains that the financial impact will not have a substantial effect on its overall finances.

The NYSE, owned by the Intercontinental Exchange, declined to comment on the matter. The exchange had previously attributed the disruption to a technical issue that occurred earlier this month.