NYSE plans trial run for Snap IPOStaff Writer | February 23, 2017
The New York Stock Exchange (NYSE) will conduct a trial run of Snap Inc's initial public offering on Saturday in anticipation of what is expected to be the biggest U.S. technology IPO in nearly five years.
Public offer To exercise IPO trading logic
It encouraged all firms to participate by sending samples of order flow they expect to receive from clients.
The stakes are high for NYSE in handling the closely-watched offering for Snap, which runs popular messaging app Snapchat. Even the smallest hiccup could taint NYSE's reputation, industry sources said.
"It's a big deal and they clearly want to make sure it goes smoothly - you can't fault them for that," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.
"They want to make sure the systems are a 'go' and there are no glitches or bugs in the system, so it is just a course of action."
NYSE, which is owned by Intercontinental Exchange, does not do trial runs for all IPOs. But it makes exceptions for big, high-profile unveilings, such as Twitter's in 2013 and Alibaba Group Holding in 2014. ■