SEC Probes Nasdaq's $11M Profit From Facebook IPO

Law360, New York (June 5, 2012, 10:19 PM EDT) -- Securities regulators on Tuesday reportedly opened an investigation seeking to determine how Nasdaq OMX Group Inc. made $10.7 million during Facebook Inc.'s troubled initial public offering, as the exchange prepares to compensate investors who lost money because of its technical glitches.

Nasdaq has earmarked about $13 million for investors, including the $10.7 million the exchange allegedly made trading so-called orphan shares during Facebook's IPO. The SEC is investigating the profit, trying to determine whether the exchange processed its orders ahead of other investors', according to the...
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