Nasdaq Strikes $10M Deal With SEC Over Facebook IPO

Law360, New York (May 29, 2013, 2:51 PM EDT) -- Two subsidiaries of Nasdaq OMX Group Inc. agreed Wednesday to pay $10 million to settle a U.S. Securities and Exchange Commission suit over the firm’s role in Facebook Inc.’s disastrous initial public offering, marking the agency’s largest-ever fine against a stock exchange.

A design flaw in Nasdaq’s system to match buy and sell orders delayed the May 18 IPO, the SEC alleged in an administrative order filing and settling claims against The Nasdaq Stock Market LLC and Nasdaq Execution Services LLC. Senior leaders at the exchange,...
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