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Nasdaq: We Bungled Facebook IPO

CEO Robert Greifeld: Nasdaq is 'humbly embarrassed'

By Neal Colgrass,  Newser Staff

Posted May 20, 2012 4:46 PM CDT

(Newser) – Nasdaq admitted today that it mishandled Facebook's record-busting IPO on Friday with maddening delays and technical glitches, the Wall Street Journal reports. "This was not our finest hour," said Nasdaq CEO Robert Greifeld, who called his exchange "humbly embarrassed." Nasdaq's board met today, he said, and will make changes to improve its IPO auction process. But nixing the IPO "never came into" their thoughts.

Trading snafus started with a 30-minute delay Friday morning, and worsened when traders placing major orders for hedge funds and mutual funds had to wait hours to hear whether trades had been confirmed. Some investors pulled out, uncertain what had sold or at what price. Still, Greifeld said he was confident that Nasdaq would continue to increase its market share of IPOs. Nasdaq had competed intensely for Facebook's listing and beat out rival NYSE Euronext.

Mark Zuckerberg, center, applauds at the opening bell of the Nasdaq stock market, Friday, May 18, 2012, from Facebook headquarters in Menlo Park, Calif.
Mark Zuckerberg, center, applauds at the opening bell of the Nasdaq stock market, Friday, May 18, 2012, from Facebook headquarters in Menlo Park, Calif.   (AP Photo/Nasdaq via Facebook, Zef Nikolla)
Facebook employees at Menlo Park are seen on the Nasdaq board seconds before founder Mark Zuckerberg rings the Opening Bell for the Nasdaq stock market board on May 18, 2012, in New York.
Facebook employees at Menlo Park are seen on the Nasdaq board seconds before founder Mark Zuckerberg rings the Opening Bell for the Nasdaq stock market board on May 18, 2012, in New York.   (Getty Images)
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COMMENTS
Showing 3 of 4 comments
sobe
May 21, 2012 9:37 AM CDT
Nasdaq says that Facebook shares dropping was not their fault and the stocks plummeting was not do to their actions. Of course it was.  Can you imagine how well the stocks would have sold if people didn't cancel their orders, if people received their orders when they asked for them.  Most people that canceled, canceled because they didn't get their orders.  For example, I placed an order at 11am and by noon I had put in a cancellation.  Neither the order nor the cancellation went through.  Instead at 4pm, my order expired, without it ever being processed.  Can you imagine how many people were in my situation.  I wouldn't be surprised if Facebook stock still goes up double digits once it starts trading real time.     
SPHeroid
May 20, 2012 8:49 PM CDT
I find it telling that some people can't push money and paper around fast enough... Obviously the answer is to further deregulate and lower tax rates.....
ladyrosedeky
May 20, 2012 7:35 PM CDT
Not surprising at all. There have been a number of times I've placed orders for a stock which will take almost all day to go through that is traded on NASDAQ. So NASDAQ, you've got a little more checking into your house to do.

 
NASDAQ • Facebook • shares • NYSE Euronext • facebook IPO

 
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