NEW YORK (Reuters) – The New York Stock Exchange on Saturday did a test run of Twitter’s highly anticipated market debut, as it seeks to avoid the types of problems that plagued Facebook’s initial public offering on rival Nasdaq.
The Big Board, run by NYSE Euronext, regularly does systems testing on the weekends, but this was the first time it had run a simulated IPO, and it did so at the request of its member firms – many of whom took part in Facebook’s 2012 IPO on Nasdaq OMX Group’s main exchange.
The NYSE was testing mainly for two things: To see if its systems could handle the amount of message traffic that might be generated by the IPO; and to make sure that once the IPO took place any firms that placed orders would promptly receive the reports telling them that their orders had been executed.
It can also be seen as part of NYSE’s struggle with Nasdaq for supremacy in technology listings. Both exchanges vied to be home to Twitter’s stock, and many analysts said the trading disruptions that occurred on Facebook’s Nasdaq debut likely played to NYSE’s favor, as it tries to become the destination of choice for technology listings, something Nasdaq once dominated.
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NYSE stress tests systems with Twitter IPO simulation to avoid Facebook failure (RT (blog))
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Aiming to avoid Facebook fiasco, NYSE holds 'successful' dry run to prepare … (GlobalPost)
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