Yesterday's Nasdaq Glitch Provides Today's Quote Of The Day

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 comments:

"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.” 

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1 comment about "Yesterday's Nasdaq Glitch Provides Today's Quote Of The Day".
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  1. Jay Sears from Rubicon Project, August 23, 2013 at 4:35 p.m.

    Nasdaq processes 40 billion trades a month. We (Rubicon Project) process almost 3 trillion bids a month. The company has had to engineer its own hardware to keep pace with growth http://www.founderblog.com/2013/08/22/hyper-speed-hyper-scale-advertising-automation-requires-hyper-fast-hardware/

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