Facebook IPO affected by NASDAQ trading bug
Stock Exchange CEO told reporters that NASDAQ system problems led to Facebook trading delays
By Juan Carlos Perez | IDG News Service | Published 09:47, 21 May 12
Technical problems at the Nasdaq exchange affected the trading of Facebook shares on Friday, the much-anticipated day of its IPO (initial public offering), Nasdaq OMX Group chief executive Robert Greifeld told reporters yesterday.
The problems, which centred on order cancellations, have "humbly embarrassed" Nasdaq, which did not have its "finest hour," Greifeld told The Wall Street Journal.
Facebook shares were expected to start trading at 4pm UK time, but the process was delayed by about 30 minutes, and other glitches surfaced throughout the trading day, which led to confusion among investors.
Nasdaq's board met at the weekend to address the issues and plans to adjust its IPO auction process in light of the problems encountered on Friday, Greifeld said.
However, the New York Times reported Greifeld saying that the technical problems had no impact on the performance of Facebook shares. Facebook's first day of trading was largely considered underwhelming because its shares closed almost flat, up only $0.27 at $38.27.
Greifeld pegged the initial trading delay on poorly designed software for IPO auctions, as systems tasked with setting an opening price buckled under a flood of order cancellations and updates.
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