Nasdaq to pay $10 million to settle SEC charges over Facebook IPO
May 30 , 2013
Nasdaq has agreed to pay $10 million in order to settle charges over mistakes made during Facebook's initial public offering last year, the US Securities and Exchange Commission (SEC) said on Wednesday.
The settlement is the largest penalty ever to be paid by a stock exchange.
Facebook's IPO on May 18, 2012 was the largest ever in terms of volume.
However, a technical glitch led to a delay in the trading of shares.
Trading was delayed by about half an hour as a result of late order cancellations.
According to the SEC, Nasdaq's senior management believed they had rectified the problem, which they had not, and consequently resulted in a backlog of more than 30,000 orders.
Facebook shares ended the day at $38.23, just above its initial pricing of $38.