May 25 - How a breakdown in communication and technology by the Nasdaq affected market makers and retail investors in Facebook's IPO. Reuters' Jennifer Merritt and Jed Horowitz on their latest reporting.
We're outside the NASDAQ market site one week after another bungled FaceBook IPO. And still all week later leaves investors aren't sure what happened market makers aren't aware it happen. But we're learning a little bit more each and every day -- to our reporting to our reporters have been following this story throughout the week join me. That's Jennifer Merritt and -- my -- I wanna start with you Jennifer because you are learning more about the play by play about what was going on inside the NASDAQ. When this is -- to start trading what have you learned. One of the things we learned that the call that all the market makers come on lesson. Almost four hours normally last couple of hours if that. And nobody knew that was going on they were beaten big market because I still think quarters and after the eleven -- five delay pending -- but -- hate those -- Later they learned that anyway after about eleven over my 1111 we're never taking him when as the market -- late afternoon at market right. So where -- installed something that was not true. Well that's appears like we're reading your Mac NASDAQ from happening doesn't appear that there was any real sense that what was going on inside and -- of state of the conference hours trying to find out what was happening where -- confirmation where they weren't getting their confirmations in the second like it was but I -- It was they didn't get any confirmation so like -- at the same time we. Tell investors on the phone whenever there -- the same thing that's happening in retail investors were desperate to get in that on the shares and then they got in and they didn't know what has happened. We talked to a woman who had gotten 400 shares. And then she saw the price to write the report you -- execute. Cheaper in the canceled -- it's got scared and normally within. I don't know what -- you spoke to here revered him toward what's happened. Hear anything all day and night she found out that roared through discount -- know that you lost a thousand dollars off. And then they hear about that professionals. Didn't know what was going on so. Complete loss of trust in in the markets. It's not like complete chaos absolutely I had an advisor earlier in the week tell me that he's. Just now trying to convince you -- to come back into the market aren't and commitment is not a casino and I'm really doesn't help that not help but but the inside was that. You know some of the market makers were asking that the shares be confident that they have been told no everything was fine but nobody was getting noticed market makers. Naming their money on longing injury and I think they didn't know they they didn't know what they and they didn't know but canceled. I'm really glad that this isn't an electronic supposed to -- those corners. Three milliseconds and it was taking longer in the expect even within milliseconds or orders are coming in right it just kept going knowing in knowing you get any answers all day. And get your point about rod which is so important and so hard to get back to some security in its worst nightmare. When when they go to the their own trade group conferences -- retail brokers. It all they talk about every story that's from. 2008 in all made off him at all. The -- flash crash following year so the former head of one of these who now runs -- -- -- city when it happened at a worse time. Finally the market. The market had it coming back. So you could say to investors look you know we're back up -- 100% from the bottom line. -- -- hand and everybody's all excited about FaceBook. And crash rights that are gonna talk about thanks for your reporting to you on that. -- Rhonda schaffler at this writers.