NYSE to allow trading firms to test systems in preparation for Twitter IPO
The New York Stock Exchange (NYSE) said on Friday trading firms were allowed to conduct tests on their systems to address any technical issues that might happen in the much-awaited public listing of Twitter Inc. The test would happen on October 26, as said in a notice sent to trading firms.
The move by the stock exchange was reportedly done to avoid any glitches similar to Facebook's debut on Nasdaq back in May last year. Nasdaq had paid a massive USD10 million penalty due to technical glitches and USD62 million in compensation to trading firms that were affected by the technical glitches. Trading delays and failures in trading orders had forced US Securities and Exchange Commission to levy such fine against Nasdaq. The delays had also cost market making firms a total of USD500 million in trading costs.
Twitter's IPO would be the biggest debut of a social media company on a stock exchange to date. Twitter is expected to debut in mid-November.
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