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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.May 19, 2012
- apparently not that well
http://www.ft.com/intl/cms/s/0/83fc3c2a-a2bb-11e1-826a-00144feabdc0.html#axzz1vRyPz94KMay 20, 2012
- 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.May 20, 2012