NASDAQ OMX Group Inc To Pay $10 Million Over Handling Of Facebook-WSJ

Wednesday, 29 May 2013 12:21pm EDT 

The Wall Street Journal reported that Nasdaq OMX Group Inc. will pay $10 million to settle alleged securities law violations over problems that arose in its handling of the Facebook Inc. stock market debut last year, according to regulators. The Securities and Exchange Commission in a statement cited poor systems and decision-making as Nasdaq struggled to open up Facebook shares for trading last May following the social-networking company's hotly anticipated initial public offering. The fine is the largest ever levied by the SEC against an exchange. Wall Street firms suffered an estimated $500 million in losses linked to the episode. The SEC's move follows months of back-and-forth between the agency and Nasdaq. Executives at the exchange operator had been angling for a settlement closer to $5 million, people involved in the discussions said last month, but then showed a willingness to pay up to move on. Problems with Nasdaq's trade-matching process left brokers guessing at their Facebook positions for hours on May 18, 2012, the day of the debut. Some retail investors have said they went days without being sure how much of the stock they owned. 

Company Quote

-0.06 -0.14%
21 Nov 2014