The Banking and Strategy Initiative

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Facebook’s back in Business | The Deal Economy

Facebook stayed above $30 thru this week as shorts finally seemed to have their fill on the scrip. It trades wonderfully close to its $100 B valuation dream before more restricted stock supplies come into the market at three month and six month lock down exits.

Hearings on the hill seemed to continue to spell trouble for NASDAQ in the meantime as more than Eleven firms have pushed recommendations on the IPO process. Knight Capital recommended widening quote increments from 1 cents and banning rules that allow exchanges to collect fees from some traders to pay others according to a Bloomberg report

Among the new challenges targeted by rule makers would be competition between exchanges and brokers to keep the business and stability issues from HFT orders.

Facebook and Bats failures were used as examples to present data to support regulating automated trades and capital requirements for traders. Because of the proliferation of ECNs and “Dark pools” NYSE’s share of trading is don to 21% from as much as 82% in 2002

NYSE and NASDAQ posited  revival of trade at rules in the face of fragmentation of trading that will mandate that trading outside exchanges be completed at prices better than the Exchanges, thus linking all trades to the bid and offer on the Big Board/NASDAQ

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