Will These Precautions Help the NYSE Ace Twitter’s IPO?
The date of the Twitter initial public offering is fast approaching, and NYSE Euronext (NYSE:NYX) is taking no chances in its attempt to avoid the embarrassment of the Nasdaq (NASDAQ:NDAQ) over Facebook’s (NASDAQ:FB) 2012 IPO. According to Reuters, the NYSE is going to the extraordinary measure of scheduling a test-run during the last weekend of October in hopes the precautions allow for an error-free launch for Twitter.
Reuters reports the NYSE will make its entire platform available to traders Saturday, October 26, so they could test their equipment and make sure there were no hitches on the day Twitter goes public. The stock exchange will open up registration and provide details on how the closed Nasdaq will function on the day of the test. After receiving the honor of running Twitter’s initial public offering, NYSE Euronext knows what’s on the line.
The Nasdaq was bruised in both reputation and wallet, suffering $10 million in fines from its inability to provide Facebook with a smooth launch in May 2012. In addition, the tech-heavy exchange volunteered to pay $62 million out to companies affected by the malfunctioning system when Facebook went public. The $62 million sum was approved by the Securities and Exchange Commission in March. Clearly, the NYSE has no intentions of anything less than a flawless IPO for Twitter.