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NASDAQ's attempts to have traders cooperatively tidy up the mess on Monday were treated with scorn and derision by those same traders with many being left in reasonable but unprovable positions and facing the prospect of major losses when having to re-sell the shares at prices much lower than they believed they'd achieved for their clients.
Traders are arguing that with the knowledge that their systems were flawed, NASDAQ should have temporarily delayed the official launch of trading. This bungle will make it exceedingly difficult for NASDAQ to convince the next big tech IPO to shun NYSE's advances.
There are also very worrying reports that future earnings forecasts from Morgan Stanley (the lead underwriter) were modified toward a more pessimistic view mid through the IPIO roadshow. Some major traders are saying that they were warned of this reduced earnings guidance, but that smaller traders and the general public were not. Recent reports suggest that regulatory authorities have launched an investigation.
Many investment advisors (who strongly advised their clients to stay well away from the IPO) are saying that the numbers could never support a price in this range and that too many people were caught up in the hype of the moment and were ignoring any semblance of common sense.
Class actions are already in play.
