Nasdaq Must ‘Earn Back’ Cred After Facebook Snafu: Exec
In the wake of Facebook’s mishandled initial public offering, Nasdaq OMX must work hard “earn back” the credibility it lost in the debacle, a senior executive from the exchange said Tuesday.
Lingering fallout from the social networking giant’s IPO continues to haunt its stock and deter investors. For that reason, Eric Noll, executive vice president and head of transaction services at Nasdaq , said that the exchange must set out to buff away the black mark left by Facebook’s public offering. A series of cascading missteps have since made the social network's stock floatation synonymous with the term “botched.” (Read more: UBS to Take $356 Million Loss on Facebook IPO.)
In an interview with CNBC’s "Squawk on the Street" to tout a new data storage offering with Amazon.com , Noll said that “we have to earn our credibility back. We have to continue to demonstrate to the marketplace, as I think we have, that we are the best place for listed companies.”
Nasdaq, Noll added, intends to show a skeptical marketplace that it remains “the best place for trading. We are the best place for new innovative ideas like the FinQloud. We intend to do that every day.”
As part of an effort to create a new cloud computing solution for broker-dealers, Nasdaq and Amazon have joined forces to create FinQloud, a low-cost data storage center that helps firms comply with regulatory requirements. The offering is open to all broker dealers, regardless of whether or not they trade on the Nasdaq, Noll said.
Amazon is frequently mentioned among the vanguard of companies looking to tap the emerging cloud computing space as an avenue for increased profits and innovation.
Andy Jassy, head of Amazon’s web services, said that the FinQloud partnership with Nasdaq was one way that Amazon was trying to maximize the potential of corporate cloud-computing around the world. (Read more: Active in Cloud, Amazon Reshapes Computing.)
“We are at the beginning of a … shift in computing where in the fullness of time, very few companies will own their own data centers because the economies in the cloud are so great,” Jassy said. “It is not going to be cost effective to run your own data center.”