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Nasdaq CEO went ahead with Facebook IPO despite signs new software had bugs

Nasdaq Chief Executive Bob Greifeld pressed ahead with Facebook’s initial public offering despite signs that the new software Nasdaq was using to launch the much-hyped stock sale still had bugs, market veterans said.

Wall Street insiders said it appears Nasdaq used untested software to launch the botched IPO and had been walking the platform through its paces in an “unprecedented” number of simulations in the days leading up to Facebook’s May 18 debut.

Nasdaq uses different software to launch issues than when handling existing listings.

“It’s not unusual to test out a new system, but it’s unusual to test it as many times as they did that week,” one source told The Post.

During a conference call on Monday evening, Nasdaq officials said that they were unaware of any problems with the system.

However, sources said that there may have been signs that the system wasn’t glitch-free even at the 11th hour and that Nasdaq opted to roll the dice.

“They may have thought they did not have any material issues with the systems,” said one exchange platform official.

Detractors also said that Nasdaq didn’t have some of its key executives in New York to put out fires with the IPO.

Greifeld was in Menlo Park, Calif., with Facebook’s executives at their headquarters. Meanwhile, Nasdaq’s exchange transactions services pro, Eric Noll, was in Philadelphia.

Greifeld’s critics say Facebook’s IPO flop is just one example of many stumbles the CEO has faced in recent years.

Indeed, Greifeld is sitting squarely on the hot seat with some speculating that the Facebook fiasco could cost him his job despite the fact the Nasdaq board has expressed its support.

Greifeld’s take-no-prisoners leadership style has led to a number of embarrassments.

Five years ago, Greifeld mounted a widely panned, unsuccessful hostile takeover of the London Stock Exchange.

And last year, Nasdaq’s long-shot bid to purchase its closest rival , the New York Stock Exchange, was blocked by the Justice Department.

“Personally, [Greifeld’s] a nice guy, but as a CEO, he’s aggressive and sometimes that can bite you,” said one former colleague.

At this point, Nasdaq’s liabilities related to the Facebook debacle may be as high as $200 million.

A number of underwriters and market makers — including Citigroup, UBS, Citadel Investment Group and Knight Capital, which purchased Facebook’s IPO on behalf of their clients — may be looking for the exchange to shell out millions for client losses.

Nasdaq has deferred to the Financial Industry Regulatory Authority to manage monetary claims against the exchange and determine how big a check it will have to write.