Facebook IPO Results in Record-Setting Fine for NASDAQ
The Securities and Exchange Commission today charged NASDAQ with securities laws violations attributable to poor systems and poor decisions related to the initial public offering (IPO) of Facebook shares, and is imposing a $10 million penalty.
The Securities and Exchange Commission today charged NASDAQ with securities laws violations that it blamed on poor systems and poor decisions during the initial public offering (IPO) of Facebook stock last May.
NASDAQ has agreed to pay a $10 million fine, the largest-ever paid by an exchange, according to the SEC.
“Too often in today’s markets, systems disruptions are written off as mere technical ‘glitches’ when it’s the design of the systems and the response of exchange officials that cause us the most concern,” said Daniel Hawke, head of the SEC Enforcement Division’s Market Abuse Unit.
According to the SEC’s report, a design limitation in NASDAQ’s system that matches IPO buy and sell orders disrupted the Facebook stock offering.
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