CNBC screenshotThomas Joyce, the Chief Executive Officer and Chairman of brokerage firm Knight Capital, blasted Nasdaq for its handling of the Facebook Initial public offering this morning on CNBC’s “Squawk on the Street.”.
“First of all, we want to point out that this wasn’t in anyway, shape or form an industry failure. This is not a systemic issue. All of the financial services firms that were out there handling client flow handled it perfectly. This is not he first Initial public offering that’s ever come down the pipe. They understand the process and handled it perfectly. The failure was Nasdaq’s. It was Nasdaq’s failure,” Joyce said.
“As you heard us say in the not too distant past, this was arguably the worst performance by an exchange on an Initial public offering ever. And we say ‘exchange.’ we’re not saying anything to do with fundamentals of Facebook. we’re not saying anything about how the underwriters handled the deal. we’re talking about operational issues of an Initial public offering,” he said.
Joyce explained that because of several technical and systemic issues that happened on Friday when Facebook began trading on Nasdaq, Knight Capital is now sitting with a loss and his brokerage firm got “punched in the nose” and “it hurt.
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