By Dow Jones Business News, October 18, 2013, 12:55:00 PM EDT
The New York Stock Exchange will allow trading firms to test their systems in preparation for Twitter Inc.'s initial
public offering, as market participants seek to prevent technical failures like those that marred Facebook Inc.'s ( FB )
debut last year.
The exchange, run by NYSE Euronext ( NYX ), will let firms test their trading systems in a mock opening auction of
Twitter's stock, it said in a notice to traders Friday. The dry run is set for Saturday, Oct. 26.
Earlier this week, Twitter revealed in a regulatory filing it would list its shares on the NYSE with the ticker symbol
NYSE officials planned the Twitter testing in response to requests by market participants, a person familiar with the
matter said. While weekend testing of the exchanges' systems is common, such testing typically doesn't relate to the new
listing of a stock, the person said.
Twitter's hotly anticipated IPO could take place as soon as November. The roadshow to market the deal to investors
could begin as soon as Oct. 25, according to people close to the discussions, although it isn't clear if it will.
The NYSE exercise comes a year and a half after technological problems at the Nasdaq Stock Market complicated
Facebook's trading debut in May 2012.
Problems with the exchange's system contributed to a 30-minute delay in Facebook's market debut. Brokers who had
entered trades on investors' behalf waited more than two hours to learn the status of their orders, and in many cases
the results weren't what they expected. The problem resulted in hundreds of millions of dollars in losses and lawsuits
brought by investors and trading firms.
In May, Nasdaq paid $10 million to settle charges brought by the Securities and Exchange Commission, which claimed the
exchange company broke market rules during Facebook's IPO. Nasdaq didn't admit or deny any wrongdoing as part of that
Tests Nasdaq had conducted ahead of Facebook's IPO failed to detect those problems, Nasdaq Chief Executive Robert
Greifeld has said.
Write to Matt Jarzemsky at firstname.lastname@example.org
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