Nasdaq Fined $10M Over Facebook IPO Failures

Posted by Soulskill on Wednesday May 29, 2013 @07:57AM from the doling-out-wristslaps dept.

twoheadedboy writes "Nasdaq has been fined $10 million by the U.S. Securities and Exchange Commission over 'poor systems and decision-making' during the Facebook initial public offering. When Facebook went public on 18 May 2012, it was hoping for a major success, but technical glitches and poor decision making at Nasdaq caused real problems. The SEC said 'a design limitation' in the system to match IPO buy and sell orders was at the root of the disruption, thought to have cost investors $500 million. Orders failed to register properly, leaving banks like Citigroup and UBS in the lurch and making additional, unnecessary bids. They may still win money back from Nasdaq if legal challenges go their way."

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Re:Why bother? by tazan · 2013-05-29 09:01 · Score: 4, Interesting

According to the article NASDAQ made 10.8 million profit by shorting Facebook in just one of their rule violations. So they aren't even getting fined as much as the profits they made violating the rules.