Nasdaq's $62M payout for Facebook IPO approved
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
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Pirates trade for Mariners’ Happ
- Armstrong escapee caught; murder charges pending
- Heyl: Longtime disc jockey Jimmy Roach to turn dismissal into brighter times
- Experimental Ebola vaccine could stop virus in West Africa
- Pirates’ Burnett endures another poor start in blowout loss to Reds
- Inside the Steelers: Rookie linebacker Chickillo continues to excel
- Steelers’ reserve quarterbacks vie to secure spot behind Roethlisberger, Gradkowski
- Pirates bolster bullpen by trading for former closer Soria
- Judge rules McCullough guilty of taking money from elderly woman’s estate
- Starkey: Garoppolo baffles Steelers
- Steelers stress improved conditioning in attempt to play past injuries