3 ms·

Can't we all rest at peace knowing that the facebook guys priced it perfectly and raised the maximum amount of money they could and these high frequency traders

by sigkill 14y ago

Can't we all rest at peace knowing that the facebook guys priced it perfectly and raised the maximum amount of money they could and these high frequency traders and investment bankers couldn't manage to play on perception to make their share of quick money that they've been doing at every IPO. This almost seems to me like they want to play on public perception to somehow bring the price to a higher number and then sell it. Is that why the news is filled with facebook this, facebook that? Almost sounds like a conspiracy theory.

Zombieball 14y ago
Agreed, there should be more news about how awesome of a job the underwriters did!
- sigkill 14y ago
  Exactly my point. Just because this time around, people who matter (i.e. people with money) lost money, the real smart folks totally don't get the recognition. But I'm sure that at facebook offices atleast they'll hopefully be recognized and get rewarded.
antrix 14y ago
It is being argued that these losses aren't just vanilla trading losses. They arose due to technical glitches at NASDAQ which led to quotes being unavailable, delayed processing order cancel requests, missing acks, etc. Essentially, traders couldn't act in time to react to the market due to NASDAQ's troubles. Edit: I should also add that Citi, Citadel, etc. were acting as market makers - they don't have the option of holding the stock for recovery as others in this thread suggest.
- astrodust 14y ago
  Are we supposed to feel sorry for the poor market maker? They were trying to skim an enormous profit and ended up with a small loss. Ç'est la vie.
  - antrix 14y ago
    One corporation is claiming losses from another corporation for services not rendered as expected. What's the outrage for?
  - sseveran 14y ago
    When AWS goes down people get angry. When NASDAQ goes down different people get angry.
- WarDekar 14y ago
  I'm not sure I have any sympathy even if NASDAQ had trading issues- do they actually guarantee trades go through and you're informed within a certain period of time? From what I've seen and read, it boils down to a bunch of people claiming they lost out because the price didn't balloon on the first day of trading. Yet, you know, it's still down >15% in the week after that. How can anyone that bought last Friday possibly claim they got screwed in this matter? Unless NASDAQ has terms that say that future trades can be guaranteed, I don't see any legitimate beef here.
JumpCrisscross 14y ago
The investment bankers made more money by the price being high - MS made around $100 million. HF guys similarly - high frequency will have access to multiple venues and shouldn't get pinned to a single faulty system. Plus, few HFs would take on IPO stock. The losers were traditional market makers and the pensions, hedge funds, etc. that bought the IPO stock. And Facebook employees.
- WarDekar 14y ago
  How did FB employees lose in this? They likely have a run out before they can sell- it doesn't really matter what the IPO was at, the share price would've settled to the same point regardless.
  - rieter 14y ago
    The market perception right now is "Facebook swindled us". It will affect Facebook stock price for quite some time.

by sigkill 14y ago

Zombieball 14y ago

Agreed, there should be more news about how awesome of a job the underwriters did!

sigkill 14y ago
Exactly my point. Just because this time around, people who matter (i.e. people with money) lost money, the real smart folks totally don't get the recognition. But I'm sure that at facebook offices atleast they'll hopefully be recognized and get rewarded.

antrix 14y ago

It is being argued that these losses aren't just vanilla trading losses. They arose due to technical glitches at NASDAQ which led to quotes being unavailable, delayed processing order cancel requests, missing acks, etc. Essentially, traders couldn't act in time to react to the market due to NASDAQ's troubles. Edit: I should also add that Citi, Citadel, etc. were acting as market makers - they don't have the option of holding the stock for recovery as others in this thread suggest.

astrodust 14y ago
Are we supposed to feel sorry for the poor market maker? They were trying to skim an enormous profit and ended up with a small loss. Ç'est la vie.
- antrix 14y ago
  One corporation is claiming losses from another corporation for services not rendered as expected. What's the outrage for?
- sseveran 14y ago
  When AWS goes down people get angry. When NASDAQ goes down different people get angry.
WarDekar 14y ago
I'm not sure I have any sympathy even if NASDAQ had trading issues- do they actually guarantee trades go through and you're informed within a certain period of time? From what I've seen and read, it boils down to a bunch of people claiming they lost out because the price didn't balloon on the first day of trading. Yet, you know, it's still down >15% in the week after that. How can anyone that bought last Friday possibly claim they got screwed in this matter? Unless NASDAQ has terms that say that future trades can be guaranteed, I don't see any legitimate beef here.

JumpCrisscross 14y ago

The investment bankers made more money by the price being high - MS made around $100 million. HF guys similarly - high frequency will have access to multiple venues and shouldn't get pinned to a single faulty system. Plus, few HFs would take on IPO stock. The losers were traditional market makers and the pensions, hedge funds, etc. that bought the IPO stock. And Facebook employees.

WarDekar 14y ago
How did FB employees lose in this? They likely have a run out before they can sell- it doesn't really matter what the IPO was at, the share price would've settled to the same point regardless.
- rieter 14y ago
  The market perception right now is "Facebook swindled us". It will affect Facebook stock price for quite some time.