U.S. Securities and Exchange Commission (SEC) has accused authorities Nasdaq violations of securities laws because “the system and poor decision making” in the first offering to the public (IPO) shares of technology companies Facebook according to the SEC.
Information is given on the SEC’s 29/5 and the sum of $ 10 million penalty is the largest one in the history of a stock exchange. SEC said the executives of Nasdaq know about the technical issues but Facebook decided to open for trading of securities that does not fix the root of the problem.
After the extended secondary trading, technical problems continue Because of these problems more than 30,000 Facebook shares purchase orders was stuck in the Nasdaq system for more than two hours without being implemented or canceled. All market losses caused about $ 500 million.
“This action shows the Nasdaq stock exchange system failed and how the decision was hastily made one of the biggest IPOs historic place full of problems, there are signs of serious violations the basic rules of the market “George Canellos, director of the enforcement division of the SEC, said.
Nasdaq Executive Board accepted the settlement payment amount without admit or deny the allegations. In addition, the Nasdaq also pay $ 62 million compensation for the loss of the transactions in the market, according to an agreement mediated by the SEC.