Oct. 28 - The NYSE rigorously tested its systems to ensure they could handle the big volume for Twitter's IPO and avoid Facebook's debacled debut on the Nasdaq. Fred Katayama reports.
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Better safe than sorry.
The New York Stock Exchange rigorously tested its systems this weekend ahead of Twitter's planned IPO. It did so at the request of its member firms. Twitter will be the biggest IPO since Facebook, and they want to avoid the debacle that marred Facebook's debut on the Nasdaq. NYSE tested two things: whether its systems could handle the big traffic volume and issue reports showing that the trades had been executed.
The NYSE called a blitz, unlike the Nasdaq, which limited its test to 40,000 dummy orders. The Big Board ran hundreds of thousands of orders, allowing one firm to put in a bid for 81 million shares. NYSE said the tests were successful. The Big Board has been trying to overtake the Nasdaq as the home for tech listings. The Nasdaq got a big black eye when a system glitch prevented timely confirmations of Facebook orders for many traders. It wound up paying a big fine and millions in compensation.
One difference: Nasdaq is fully electronic, whereas Big Board IPOs involve human traders. Perhaps it's safe to bet that one human who'll be present on IPO day is NYSE CEO Duncan Niederauer, for Nasdaq CEO Bob Greifeld was bashed for his absence at the Nasdaq the morning of Facebook's IPO.
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