NYSE Takes Measures To Ensure Twitter IPO Not Like Facebook
Executive VP Of NYSE Calls Twitter A “Significant Listing.”
Scott Cutler is the executive vice president of the NYSE, and in an interview with CNN he had several remarks regarding the upcoming IPO of Twitter.
When asked how important the Twitter listing was, Cutler replied that it was a “significant listing.” He also noted that the NYSE is “excited” about having a part in the innovation that Twitter is involved with.
Will The Twitter IPO Resemble Facebook?
Cutler said that the NYSE is taking measures to ensure that Twitter does not suffer from the glitches that affected Facebook Inc. (NASDAQ:FB)’s IPO on the Nasdaq last year. He said that his exchange’s “competitive advantage” over the Nasdaq is the “transparency” surrounding the IPO itself.
We’re very much focused on having an IPO that proceeds smoothly, so that investors around the world can see actually what’s happening around the IPO to avoid confusion. We’re very much focused on making sure that we’re building and establishing confidence in the process, which is the hallmark of having a physical floor and having people here.”
The NYSE Is Prepared To Handle High Trade Volume
Cutler said that the exchange has conducted tests over the weekend to ensure that the NYSE can handle the highest trade volume expected to accompany the IPO. He noted that the deal is not the largest IPO ever handled by the NYSE, and that he does not expect the trading volume to be anything the exchange can’t handle.
Twitter Hopes To Avoid Facebook Repeat
When Facebook Inc. (NASDAQ:FB) launched its IPO in 2012, the massive amount of trading volume caused the exchange to suffer from technical glitches that cost traders millions of dollars. Twitter is hoping to avoid the same situation, and as we reported earlier this week, the company seems to be undervaluing its IPO. The NYSE is obviously well prepared for the event, which could come as soon as November 7th.
Watch the interview with Scott Cutler below:
Disclosure: The author has no position in the stocks mentioned in this article, and does not intend to initiate any position in the next 48 hours.
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