NASDAQ's disgraceful act involving FB IPO

Discussion in 'Trading' started by forsalenyc, May 18, 2012.

  1. I'm sure I'm not the only trader who got a late fill on FB IPO at 1:50 est. I know shit happens from time to time in trading, but what NASDAQ did today was disgusting. I said 'disgraceful' in the title, but I'll take that back since there's no grace in trading to begin with. Nasdaq probably had this problem resolved much earlier than 1:50est, but faced a dilemma of distributing shares at $42 when FB was trading in the $38's.... What a cheap ass move to avoid lawsuit. And the fact that FB immediately tanked following distribution makes you wonder if they got involved in bringing the price back up near the opening print. Dirty Dirty Dirty......that's all I gotta say.
  2. Someone forced you to trade a skittish IPO on its first day? Your post is like something from the Onion.
  3. It is unacceptable. Those fills should be broken. And to Rodney. Just plain ignorant to blame the trader for choosing to trade the ipo. I'm shocked by that.

    Who sold the share - the underwriters. Who bought - the trader. Who gets screwed - the trader of course. Not right.
  4. Shanb


    This was a real F-up by Nasdaq...not a good situation for anyone who got caught with any meaningful amount of shares
  5. ssaya401


    So it is OK for them to lock up your capital for 3 hours then fill it at $2 over the price it was at? Whatever you are taking please let me have some.
  6. Wasn't just FB. Znga had issues. And I couldnt use any Nasdaq order types till 2pm. Half my hot keys are nsdqscan or nsdqdark. Pain in the ass.

    I think the servers at the exchanges can't handle the hft volume anymore. The millions of flash orders sent and canceled are overwhelming the systems.
  7. Did anyone route direct NSDQ and successfully participate as a *seller* in the FB opening cross?

    I had a sell order in at 41.95 timestamped 15 minutes before the opening, nothing done and can't get a straight answer.
  8. I didn't trade ZNGA, so can't speak for it. But I had planned to go thick and quick at open, and then go small with a trend in the afternoon. When it opened at $42, I instantly punched out at $43, only to find nothing in my account. But this was only the bright side of the story. I later got filled at $42, with a 10-15second notice(wtf??) and even though the chart looks like it was trading near 41.50 at the time, it tanked so fast that traders who sold right away got filled around $40. At that point Nasdaq probably thought it got off the hook for lawsuits.....but now MS reported that it still has a large number of orders w/o confirmed from friday......... NASDAQ could face some serious issues now. MS customers won't enjoy getting the stock at $42.
  9. Just heard MS still has gotten order confirmations from yesterday. I wonder how this is going to get spun. Blame the inadequate technology or HFT abusing order flashing, canceling and messaging.
  10. Some HFT is just used to JAM everyone else in the ass by slowing down the whole system/feed with thousands of quotes a second, miles away from the bid/ask . But yeah, crooked things happened either way, its wallstreet.

    They think retail volume is gone now, just wait till after everyone gets shafted in this kind of IPO....
    #10     May 21, 2012