Nasdaq OMX Group Inc. Chief Executive Officer Robert Greifeld said a “poor design” in software driving auctions for initial public offerings caused issues with Facebook Inc.’s first day of trading.
Morgan Stanley, Facebook’s lead underwriter, completed its role in the IPO auction at 11:11 a.m. on May 18, Greifeld said Sunday during a conference call with reporters. Between then and 11:30 a.m., customers kept submitting cancellations and updating existing orders, putting Nasdaq’s systems into a “loop” and preventing it from opening the stock, Greifeld said.
The CEO, when asked if his job was secure following the technical problems, said: “I certainly hope so.”
© Copyright 2021 Bloomberg News. All rights reserved.