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While much has already been written on the topic of peak valuation, social bubbles popping, and the ethical social utility of yesterday's historically overhyped IPO, nobody has done an analysis of the...
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dan norwood's profile photoStephen Kuenzli's profile photo
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The first seconds of trading set a new record at 12,285 trades of one stock in one second. Amazing.

I'd love to know how their quote and trade execution is designed and implemented. http://www.nasdaqomx.com/2011/whatwedo/markettechnology/coretechnology says NASDAQ OMX can handle 1M messages / second. I wonder what parallelism is required to reach 1M messages / second. It seems NASDAQ got tipsy at >10k FB trades / sec, and that even affected other stocks.

Right now, it looks like Facebook executed their IPO extremely well:
1. left no money on the table; MS had to defend $38
2. gave up almost no control (quote from prospectus below) **

I think the real FB (and possibly broader-market) fun begins when Morgan Stanley pulls its defense of $38.

** We have two classes of common stock, Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except voting and conversion rights. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to ten votes and is convertible at any time into one share of Class A common stock. The holders of our outstanding shares of Class B common stock will hold approximately 95.9% of the voting power of our outstanding capital stock following this offering, and our founder, Chairman, and CEO, Mark Zuckerberg, will hold or have the ability to control approximately 55.8% of the voting power of our outstanding capital stock following this offering.
 
so NASDAQ is pointing at HFTraders as the cause of the busted IPO? it seems like a simple fix would be to make all orders valid for execution for a minimum of 1 second.
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