How do you "Like" me now?
Perhaps you heard about the little company called Facebook that went public last week? I hear that they made a lot of money (at least for early investors and option holders) in the process.
But things didn't go smoothly at Nasdaq during the IPO: copyrightjoestrazzere
- Nasdaq is under scrutiny after shares of Facebook Inc were plagued by delays and mishandled orders on its first day of trading
- The CEO of NASDAQ, Robert Greifeld, said that the stock exchange is “humbly embarrassed”
- The IPO software “didn’t work” even after thousands of hours of testing for “a hundred scenarios” aimed at anticipating problems, Greifeld said.
- The Nasdaq computer system that delayed trade notices of the Facebook IPO on Friday was plagued by race conditions
- A number of trading firms lost money due to mismatched Facebook share prices
- About 30 million shares' worth of trading were affected
- For about 20 minutes, the exchange stopped confirming trades placed by brokers
- Nasdaq may need to pay back affected investors up to $13 million from an "accomodation pool"
- Nasdaq’s software for IPOs allows investors to cancel or update details of orders until the auction runs. Trade requests received during the 5 milliseconds it took to operate the auction disturbed the process, leading to an imbalance of buys and sells and sending the program into a loop.
I wonder if Facebook investors "Like" Nasdaq now?
Perhaps they should have tested more.
This article originally appeared in my blog: All Things Quality
|My name is Joe Strazzere and I'm currently a Director of Quality Assurance.
I like to lead, to test, and occasionally to write about leading and testing.
Find me at http://AllThingsQuality.com/.