Photo: CNBC screenshot
Thomas Joyce, the CEO and Chairman of brokerage firm Knight Capital, blasted Nasdaq for its handling of the Facebook IPO this morning on CNBC’s “Squawk on the Street.” “First of all, I want to point out that this wasn’t in anyway, shape or form an industry failure. This is not a systemic issue. All of the financial services firms that were out there handling client flow handled it perfectly. This is not he first IPO that’s ever come down the pipe. They understand the process and handled it perfectly. The failure was Nasdaq’s. It was Nasdaq’s failure,” Joyce said.
He proceeded to call it one of the worst performance by an exchange on an IPO ever.
“As you heard me say in the not too distant past, this was arguably the worst performance by an exchange on an IPO ever. And I say ‘exchange.’ I’m not saying anything to do with fundamentals of Facebook. I’m not saying anything about how the underwriters handled the deal. I’m talking about operational issues of an IPO,” he said.
Joyce explained that because of several technical and systemic issues that happened on Friday when Facebook began trading on Nasdaq, Knight Capital is now sitting with a loss and his brokerage firm got “punched in the nose” and “it hurt.”
He added that they’re planning on filing a claim and he expects FINRA to adjudicate the situation.