Report: Nasdaq Used Untested Software To Launch Facebook IPO

By David Cohen 

The negative spotlight from Facebook’s initial public offering refocused its glare on Nasdaq, as the stock exchange and its chief executive, Bob Greifeld, were slammed in a published report for using untested software to launch the IPO last Friday.

The New York Post reported that the software Nasdaq used still had bugs, and that the exchange had run an “unprecedented” number of simulations with the software prior to Facebook’s IPO.

One source told the Post:

It’s not unusual to test out a new system, but it’s unusual to test it as many times as they did that week.

And an exchange official added:

They may have thought they did not have any material issues with the systems.

Greifeld also came under fire for not being on the scene, as he was at Facebook headquarters in Menlo Park, Calif., for the “bell-ringing” ceremony with Facebook Co-Founder and Chief Executive Officer Mark Zuckerberg.

Making matters worse, the Post added that Eric Noll, Nasdaq’s exchange transactions services pro, was in Philadelphia.

Readers: Are you with us in hoping that the hurricane of negative publicity bearing down on Facebook’s IPO stays offshore throughout this holiday weekend?