On October 26, The New York Stock Exchange did a test run of Twitter's initial public offering, according to Reuters. During the test the stock exchange appreciated the volume of the traffic and the reliability of the traders’ notification system.
The simulated IPO was the first for the NYSE and was designed to avoid problems that Facebook faced on Nasdaq during its IPO in spring 2012. Then the system did not manage with a considerable amount of orders for Facebook shares. Thus, major market makers estimated they lost collectively up to $500 million in the IPO and afterwards Nasdaq was fined $10 million. The exchange will pay $41.6 million as compensation.
The NYSE and Nasdaq are considered to be the major New York stock exchanges and compete for the IPO of large companies. According to the information provided by the agency, the year 2013 may become the best for stock exchanges on the IPO market for the last five years. Twitter is expected to start trading as early as November 7. It plans to sell 70 million shares at between $17 and $20 each.
