NYSE's test run for Twitter debut
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 (IPO) 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 favour.
Twitter, which intends to sell 70 million shares at between US$17 and US$20 (RM53.40 and RM62.85) each, will be holding the biggest Internet IPO since Facebook, which sold a much larger 421 million shares at US$38 each. Twitter is expected to start trading as early as November 7.
NYSE's tests on Saturday ran hundreds of thousands of orders, with one single firm placing an order at one point for 81 million shares.
"This morning's systems test was successful, and we're grateful to all the firms that chose to participate," an NYSE spokesman said. "We are being very methodical in our planning for Twitter's IPO, and are working together with the industry to ensure a world-class experience for Twitter, retail investors and all market participants." Reuters