In May, officials at the New York Stock Exchange were disappointed as the highly anticipated Facebook Inc (NASDAQ:FB) IPO decided to list on arch-rival, NASDAQ OMX Group, Inc. (NYSE:NDAQ).
Flash-forward…Today, the situation looks quite different.
When did the tables turn? Better yet, what caused the dramatic twists of events?
Well for starters, I don’t want to give the readers stale news. Everyone knows that Facebook Inc (NASDAQ:FB)’s entrance into the stock market was disappointing. The botched IPO and subsequent poor performance speaks for itself. I will therefore not place emphasis on the disappointing performance and the bearish stretch that befell Facebook thereafter.
I will focus on the ‘botched IPO’ that has tarnished NASDAQ, (but helped the NYSE Euronext (NYSE:NYX)). It should be noted that this problem was blamed by many on technical hitches within NASDAQ. The overwhelming amount of automated transactions were bound to go haywire at some point. There were numerous complaints of traders waiting for hours on end for simple transactions to go through.
With such a discrediting image on NASDAQ’s turf, things got worse when Fox Business News revealed earlier on in June that it would pay investors as much as $30 million. We later reported that NASDAQ would pay out $40 million for losses tied to the IPO.
Just as things could not get any worse for NASDAQ, the NYSE blasted it over the IPO and the settlement. NYSE’s statement, besides highlighting many points of contention, pointed out that NASDAQ’s plan was wholly inconsistent with fair practice.
Fox Business Network states today that the NYSE was aggressive with their pursit of Facebook Inc (NASDAQ:FB). Apparently, the NYSE didn’t waste time on a hard pitch to get Facebook Inc (NASDAQ:FB) to switch listing.
From this short capture it is evident that NYSE and NASDAQ were held up in a tag war
Does NYSE finally win?
NYSE and NASDAQ gollowers got further excitement after it was revealed on Friday that an error at NYSE was likely to cost a trader a loss in the excess of a million dollars.
The NYSE acted quickly to keep the situation under control. A market maker on the ground noted that something was amiss after an order for Monster Worldwide (NYSE: MMW) came through moments before the trading close intended for Monster Beverage (NYSE: MNST).
Richard Spokesman, the exchange spokesman, noted that it was a good example of human judgment at work.
In my point of view, this gives NYSE a few more points and brightens its outlook for the long run. It has not joined NASDAQ in the ‘victim to erroneous trade’ corner.