Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Nasdaq Faces $5 Mln Fine On Missteps In Facebook IPO: WSJ Reports

RELATED NEWS
Trade NDAQ now with 

Nasdaq OMX Group Inc. (NDAQ: Quote) is facing a fine from U.S. securities regulators related to the Stock market operator's missteps during last year's debut of Social networking giant Facebook, Inc. (FB: Quote), the Wall Street Journal reported Tuesday, citing people with knowledge of the matter.

As per the report, the missteps cost Wall Street an estimated $500 million, and the regulators may seek 1% of that from the exchange group as fine.

Nasdaq is in preliminary talks with the Securities and Exchange Commission or SEC over a potential settlement related to its botched handling of Facebook's offering. For the past few months, SEC has been investigating Facebook's May 18 IPO.

According to people with knowledge of the talks, both sides are discussing a monetary penalty of about $5 million, and Nasdaq has also offered to compensate customers $62 million for losses stemming from Facebook IPO trades.

In September, New York Stock Exchange parent NYSE Euronext, Inc. (NYX) agreed to pay $5 million to settle SEC allegations it provided market data to some customers ahead of others, giving clients of customized feeds an edge.

Nasdaq shares closed Tuesday's trading at $28.81, up $0.45 or 1.59 percent.

Click here to receive FREE breaking news email alerts for Nasdaq OMX Group Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Google and Microsoft are opposing a petition by hoteliers such as Marriott International the right to block personal Wi-Fi on their premises. Elon Musk, the CEO of electric car maker Tesla Motors Inc (TSLA), on Christmas announced an upcoming upgrade for Tesla Roadster that will improve its mile-range to about 400 miles. "Roadster upgrade will enable non-stop travel from LS to SF -- almost 400 mile range. Details tmrw. Merry Christmas!,"... United Parcel Service Inc. (UPS) said Friday that it expects consumers will ship more than 800,000 packages back to retailers and merchants on January 6, 2015, or the UPS National Returns Day. By the end of the first full week in January, the package delivery giant expects to transport 4 million return...
comments powered by Disqus