Ahead of Twitter IPO, NYSE will allow dry run of trading systems to avoid glitches

Ahead of Twitter’s IPO, the New York Stock Exchange is taking extra precautions to avoid the glitches Nasdaq suffered when Facebook went public. Facebook’s debut on Wall Street in May was hampered by delays and order failures on the Nasdaq, which ultimately resulted in the exchange agreeing to pay a record-setting $10 million fine to the Securities and Exchange Commission.

The troubles contributed to the social network’s stock price getting off to an unimpressive start, one that took months to fully rebound from. As Twitter, yet another massively popular brand, prepares for its IPO, NYSE officials are hoping to eliminate any potential headaches. Trading firms will be permitted to conduct a dry run of their systems in preparation for Twitter’s big day. This one-time test has been scheduled for October 26th; Twitter’s IPO is expected to come sometime in November.

Trading outages have led Nasdaq and the NYSE to consider sharing data in hopes of eliminating future incidents.

 



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Author: Daily Tech Whip

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