Warwick Business School Assistant Professor of Finance, Arie Gozluklu, on yesterday's Nasdaq glitch: "This is not the first time that trading on an exchange has suffered a technological
problem and probably not the last time."
Considering the analogy to Madison Ave.'s burgeoning programmatic exchange marketplace, the industry should take note of Gozluklu's next
"Nasdaq could see its reputation harmed by this. Nowadays exchanges are profit-making organisations with the traditional big two of the New York Stock Exchange and Nasdaq
facing competition from many alternative exchanges in the US. It could put off firms going public due to these types of liquidity problems which limit access to capital. Trust in the exchange is very
important and the US Securities and Exchange Commission are likely to push for more stringent rules to stop these system failures. There could be fines or penalties for technological problems, but it
should also take into account other players in the game, not just the exchanges.”