SEC may fine Nasdaq $5mn over botched Facebook IPO
New York: The U.S. Securities and Exchange Commission (SEC) is expected to fine Nasdaq five million dollars for its handling of Facebook’s bungled Initial Public Offering (IPO).
Nasdaq was blamed for a number of technical glitches last May that put a damper on the Facebook’s first day of trading.
The tech-heavy stock exchange is discussing the potential million-dollars fine with the SEC, which would be a rare monetary penalty for a stock exchange, according to WSJ. com.
A Nasdaq spokesperson said that the firm will, however, ‘continue to believe they acted appropriately and in the best interest of investors under challenging circumstances,’ the New York Post reports.
According to the Post, in addition to a possible SEC fine, Nasdaq has proposed paying the trading firms that make up its customer base 62 million dollars for losses stemming from Facebook debacle.
The SEC has set a date of March 29 to weigh in on the “accommodation” plan, the report said.