News Center

open
Elsewhere Online twitter Facebook SLS Blogs YouTube SLS Channel Linked In SLSNavigator SLS on Flickr

Nasdaq CEO: ‘Arrogance’ Led To Facebook IPO Flop

Publication Date: 
June 25, 2012
Source: 
The Wall Street Journal Online
Author: 
Scott Thurm

During the 18th Annual Stanford Directors’ College held June 24-26th at the law school, Nasdaq OMX Group Inc. Chief Executive Robert Greifeld delivered a keynote speech discussing how "arrogance" and "overconfidence" among Nasdaq staffers contributed to problems with Facebook’s IPO.

Nasdaq OMX Group Inc. Chief Executive Robert Greifeld said Sunday that "arrogance" and "overconfidence" among Nasdaq staffers contributed to problems with Facebook Inc.'s initial public offering last month.

Addressing a conference of corporate directors at Stanford University's Law School, Mr. Greifeld said Nasdaq had tested its systems extensively before the May 18 IPO, simulating higher trading volumes than actually occurred. But he said Nasdaq was unprepared for increasing numbers of canceled orders in the hours leading up to Facebook's debut.