TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Nasdaq's $62M payout for Facebook IPO approved

FB $25.14 -$0.59

at close on MONDAY

Daily Photo Galleries

By Stuart Pfeifer
Tuesday, March 26, 2013, 12:01 a.m.
 

The Securities and Exchange Commission has approved Nasdaq OMX Group Inc.'s proposal to pay brokerages as much as $62 million as compensation for last year's botched Facebook Inc. initial public offering.

Nasdaq's trading system was overwhelmed by high volume on the first day that Facebook's stock traded, delaying trade confirmations and contributing to a chaotic and costly day for investors in the social media company.

By some accounts, Wall Street firms lost as much as $500 million because of Nasdaq glitches during the Facebook IPO in May.

Brokerages complained that they didn't get confirmation that trades were going through, leaving investors in the dark about whether they owned the stock, or at what price. The problem was magnified as shares of the stock plunged after opening higher than expected.

 

 
 


Show commenting policy

Most-Read Stories

  1. Penn State names Barbour new AD
  2. Rossi: Roethlisberger staging big comeback
  3. Steelers notebook: Mitchell to miss beginning of training camp
  4. After year off, Steelers’ Pouncey ‘ready to go’
  5. Steelers won’t negotiate Roethlisberger extension until after season
  6. U.S. evacuates embassy in Libya amid clashes
  7. Israel agrees to extend Gaza war truce by 4 hours
  8. Megan’s Law offender in Greensburg arrested when girl, 13, found hiding in shower
  9. Rockies’ 7-run 7th-inning dooms Pirates in 8-1 loss
  10. Homicide detectives investigating death of East Hills infant
  11. How to read books in the digital age
Subscribe today! Click here for our subscription offers.