The Nasdaq stock exchange is to pay $10 million in penalties to the US Securities and Exchange Commission over the botched initial public offering of shares in Facebook.
The SEC said the Nasdaq was ill-prepared for the flotation, did not properly anticipate the likely demand from investors and a series of “ill-fated decisions” on the day of the IPO led to a number of regulatory violations.
Consequently 30,000 Facebook orders remained stuck in Nasdaq’s system for more than two hours, causing huge losses – some estimates are as much as $500 million.
The settlement – which was the equivalent of 7.72 million euros – was the largest ever penalty levied by the SEC against an stock exchange.
The exchange operator agreed to settle the charges without admitting or denying the allegations.
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