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Ivy Schmerken
Ivy Schmerken
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Facebook IPO Leads SEC to Scrutinize Nasdaq's Systems

The watchdog is investigating Nasdaq's computer systems and processes related to the flawed Facebook IPO on May 18, and could demand upgrades from the exchange operator.

Any regulatory mandate criticizing Nasdaq's computer systems is a stinging reprimand given that Nasdaq has touted its image as the inventor of the electronic stock exchange, which began in 1971, and as having the fastest matching engine for executing buy and sell orders. With its emphasis on technology, Nasdaq has been able to attract listings from some the most innovative companies in Silicon Valley including Microsoft, Apple, Cisco, Google and most recently Facebook.

The news of the SEC review also turns up the heat on Nasdaq's CEO Bob Greifeld, who was trapped in a plane traveling from Facebook's headquarters in California back to Newark, New Jersey, for five hours and was unable to communicate with his technology team while the breakdowns unfolded that day, including a two-hour delay in printing trade confirmations.

Read the rest of this article on Wall Street & Technology.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio
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