logo
Share SHARE
FONT-SIZE Plus   Neg

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

Nasdaq OMX Group Inc. (NDAQ) 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), 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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Life expectancy at birth in the U.S. is already lower than most other developed nations and is now projected to fall further behind by 2030, according to a new study. It also suggests that by 2030, national female life expectancy in South Korea could break the 90 year barrier. Department store chain J.C. Penney Co. Inc. on Friday reported a turnaround to profit in the fourth quarter as a slight decline in sales was more than offset by lower expenses. Adjusted earnings per share for the quarter beat analysts' expectations, while revenues slightly missed their estimates. Earlier today, J.C. Penny announced a plan to optimize its national retail operations. Google is planning to significantly expand a carpool service on its navigational app Waze, according to a report in the Wall Street Journal. The move indicates the company is edging closer to a potential clash with ride-hailing service Uber Technologies Inc.
comments powered by Disqus
Follow RTT