Feeds

Nasdaq red-faced after software snafu stalls Facebook IPO

'Humbled' chief promises fix for temperamental public debut system

Eight steps to building an HP BladeSystem

Nasdaq OMX chief Robert Greifeld has said he is "humbly embarrassed" by the technical glitch that held up Facebook's IPO on Friday.

Greifeld said that problems with order cancellations interfered with the social network's debut, delaying it by more than two hours from the ringing of the bell at 9am EDT.

"This was not our finest hour," he told reporters in a conference call on Sunday, according to the Wall Street Journal.

He also said that Nasdaq would be making changes to its auction process, but he didn't reveal any details.

Nasdaq had performed extensive testing beforehand and hadn't spotted the problem, but a malfunction apparently sent the stock exchanges systems into a loop that stopped the shares from coming online on schedule.

Some are blaming the technical problems for the poor performance of Facebook shares on Friday; the stock closed at just 0.6 per cent above the IPO price despite the preceding public anticipation of a big bump.

Traders said that investors got cold feet after having to wait over two hours after the stock started trading to see if their initial orders had been honoured or cancelled in the technical hiccup. Since they didn't know for sure how much they'd bought or sold and at what price, they bailed out.

The problems aren't the first technical issues to come up on newly computerised stock exchanges. In May 2010, a computer-driven sale worth $4.1bn triggered a "flash crash" that temporarily wiped out $1 trillion worth of shareholder equity in minutes.

In March this year, the US's third-largest stock exchange, BATS Global Markets, had to withdraw its own IPO on its own exchange after a series of unforeseen glitches. ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.