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A check of the markets still continue want to -- -- the offering causing a whole lot of noise a whole lot of finger pointing.
-- next guest will help us hopefully sort through some of it at least joining us now is David -- former vice chairman of the NASDAQ.
And chairman of capital markets advisory welcome to you.
-- and the humidity insider with all of this understand in the NASDAQ in the computer systems the trading systems -- tells me sheds more light on what possibly went wrong with the -- -- Well.
And also I spent and number you're running equity capital markets which was the business that price new issues -- -- that Prudential securities and I'm actually an advisory grant toward non their capital markets issues and so.
I priced over 500 IPOs and -- -- plenty of blame to go around typically and and actually was called in to do postmortem on the Vonage transaction.
Rate by some a late stage venture capitalists and you've got a series of missteps here you know it clearly didn't hurt didn't help.
To have the uncertainty -- Morgan Stanley and Goldman analyst going out into the marketplace.
And and cutting estimates in the middle of the transaction.
-- these markets are now so trading centric and there's so so much you know if you will excitement around and often like FaceBook that very part.
For a syndicate manager of the -- that -- Morgan Stanley and ultimately have to put the book together allocate the stock price the deal.
To figure out what's real what's not real where the real price is.
And something like that snap flu with NASDAQ.
In the early morning hours on the open totally changes the psychology on the stock people -- at reports at the end of the day do you think NASDAQ is going to -- with -- retail investors anything.
Well there's typically you know in insulation you're you're you're you're the you're largely immune nine I don't know what the legalities of it are I mean there's there's a difference between a moral obligation because clearly was your technology that that -- Messed it up.
But on the other hand there's the issue of you know what your actual legal stature as I.
Clearly they lost quite a few people quite a bit of money it was interest -- because they ended up short it seems according to press accounts.
Three million shares of stock and they made ten million dollars on it -- give them a little -- of -- -- -- -- three -- but -- -- the allegations now -- that NASDAQ knew that they -- immune system problems at a time and they went ahead with the IPO anyway and -- has a lot of people -- do you believe that's possible just from your experience -- you know -- -- similar -- in the market about the -- massive when he tried to open up their own stock and I think that people under such amazing pressure if you think about it -- and if things aren't working you know -- in real time environment.
He's trying to put a -- -- any trying get it to work in them -- -- across the market the thing that concerns me structurally.
Is these markets because of changes in regulations starting with a reggae TS and in 1998 the proliferated the number of it alternative trading systems have become so incredibly complicated and so incredibly fast that when things go awry and everybody's.
Now -- commodity based sort of pricing trying to eke out a living that there.
They're they're really cutting in on the margin and it -- a -- -- couldn't handle it.
I mean that's the impression people are taking away is that fair not fair they did Hamlet.
Okay couldn't anticipate that well I well in this this is our it sounds like they tried new technology in the market that's what people are -- As opposed to an old and old way of doing things and that was the problem and it wasn't fully that it wasn't fully tested and that's the case.
You know you should probably have -- head examined effectively protecting -- companies that want -- -- transaction is largely I could drop quickly but hat's shares -- In the debut when we have all -- finger pointing.
Well -- there's nothing like stocks making people money to cure all evils and so the answer your question we wouldn't have this discussion right now that worked absolutely -- I appreciate your time your insights and my pleasure Warren Morris and I.
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