Nasdaq’s FB glitch was due to ‘poor software design’

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By Staff /  21 May 2012 , 12:56

Oh the irony of ironies. The day one of the world’s biggest tech IPO went public, Nasdaq faced a number of glitches which caused a big delay in implementing orders. According to a Bloomberg report, Nasdaq is under scrutiny after shares of Facebook Inc were plagued by delays and mishandled orders on its first day of trading (FB), blamed “poor design” in the software it uses for driving auctions in initial public offerings.

The Associated Press reports that the CEO of NASDAQ, Robert Greifeld, saying that the stock exchange is “humbly embarrassed” by its bungling of Facebook’s hugely anticipated debut as a public company on Friday. However, he added that there’s no indication the delay contributed to the underwhelming performance of Facebook’s stock, which ended at $38.23 – 23 cents above where it began.

Reuters

Facebook’s stock was expected to start trading at 11 am but didn’t open until 11:32 am, and some investors didn’t learn for hours whether their orders went through.

Business Insider reports that investors were rather angry at the glitch and some of them were taking their anger out Nasdaq demanding that the exchange return their losses incurred during the botched Facebook IPO.

Greifeld called the social network’s first day of trading “successful.” He said late order cancellations caused a glitch, according to reports published Sunday. He said Nasdaq’s board met Saturday and plans to change its IPO auction process.

The Securities and Exchange Commission has said it is investigating the matter.

With inputs from AP


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