NYSE: Twitter share trading trial “a success”

Twitter’s trial share sale on the New York Stock Exchange [NYSE] went off without a hitch as the simulated buying and selling exercise was dubbed “a success” by the stock exchange.

The NYSE allowed shares to be bought and sold by traders on Saturday in order to iron out any technical problems that may be present before the shares go public in November.

"This morning's systems test was successful, and we're grateful to all the firms that chose to participate. We're being very methodical in our planning for Twitter's IPO [initial public offering], and are working together with the industry to ensure a world-class experience for Twitter, retail investors and all market participants," NYSE said in a statement to the BBC.

It’s thought that the NYSE is conducting the tests to avoid the pitfalls that beset Facebook’s IPO when it launched with rival exchange Nasdaq in May 2012. Technical problems meant that traders were unable to find out for hours and in some cases days if trades had gone through successfully.

The Securities and Exchange Commission [SEC], which regulates the US stock market, eventually fined Nasdaq $10 million [£6.25 million] for the problems that engulfed the social network’s IPO. In addition to this Morgan Stanley was fined $5 million [£3 million] by the SEC for “improperly influencing” analysts in the lead up to the floatation.

When Twitter hits the market in November it will be the largest technology flotation in 2013 and estimates place Twitter’s stock market worth at $15 billion [£9.3 billion]. The IPO on its own is likely to generate $1.5 billion [£930 million] for the micro blogging platform.

The company announced it had filed papers with the SEC through a Tweet in September and the exact date it will launch is widely expected to be before US Thanksgiving on 28 November.