Feeds

Nasdaq red-faced after software snafu stalls Facebook IPO

'Humbled' chief promises fix for temperamental public debut system

3 Big data security analytics techniques

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. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Ex–Apple CEO John Sculley: Ousting Steve Jobs 'was a mistake'
Twenty-nine years later, post-Pepsi exec has flat-forehead moment
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.