NASDAQ OMX Wednesday agreed to pay $ 1 billion, the largest penalty ever levied on the stock exchange, from last year, Facebook's IPO process mistakes resolve civil charges, U.S. securities regulators said on Wednesday.
In the administrative proceedings on the stock exchange operators, the U.S. Securities and Exchange Commission, said Nasdaq "ill-fated decision" IPO day, leading to a series of irregularities.
U.S. Securities and Exchange Commission said the Nasdaq technology executives have realized the problem, but decided to open Facebook stock for secondary trading without first obtaining the root of the trouble.
After the transaction open up a broader market, the problems still exist. Exchange chief economist found inconsistent trading volume, market makers complaints begin the installation. Nevertheless, foreign exchange management department decided not to stop trading, SEC said.
Those poor decisions result, more than 30,000 Facebook orders still remain in the NASDAQ system, more than two hours, they should be executed or canceled. Investors were left in trouble and the market maker losses were estimated at $ 50 billion.
Co-director George said: "This action on the Nasdaq," tells the story of how poorly designed systems and hasty decisions, not only disrupted the history of one of the largest initial public offering, but the basic rules of the market have serious and widespread violations, Canellos SEC's enforcement division.
The exchange operator is not admitting or denying allegations, agreed to pay the costs.
In addition, the Stock Exchange has agreed to pay up to $ 62 million to compensate for the loss of market makers, the U.S. Securities and Exchange Commission approved an agreement earlier this year.
Wednesday settled a big step forward, as it seeks to put it behind from the consequences of the collapse of Facebook Nasdaq. Exchange still faces lingering battle who lost money in the May 18, 2012, IPO market tag.
UBS, the loss of $ 3 million - by far the most of any player market - in the arbitration Nasdaq trying to recover more money. Arbitration footing, UBS (UBS) is a representative declined to comment.
SEC's case is the latest in the continuing fight Stock Exchange. Regulators are used as a tool for law enforcement exchanges in order to enhance their compliance regulations and ensure that they are correct self-regulation.
Last year, the New York Stock Exchange as the U.S. Securities and Exchange Commission in the history of the first exchange face fines after being accused of giving certain customer transaction information "head start properly."
U.S. Securities and Exchange Commission in 2011 approved the inadequate control of Direct Edge, earlier this month, the Chicago Board Options Exchange said it expects to be fined $ 10 as much as ten thousand yuan to its responsibilities as a self-regulatory organization to resolve SEC probe.
Nasdaq CEO Robert Greifeld said on Wednesday issued an open letter, communication challenges, Facebook shares debuted unprecedented.
Greifeld wrote: "In the past year, we have carefully reviewed these events." "As the market leader, we believe that our experience, the opportunity to learn and improve."
Facebook's IPO, the largest ever in volume terms, is a much anticipated event. But speculation, quickly turned into panic, listed on Nasdaq after software bug in the IPO is a 30 minute delay.
U.S. Securities and Exchange Commission said the Nasdaq's senior management think they've fixed system problems, remove a few lines of computer code, and decided not to delay the start secondary market trading.
However, technical problems still exist, with many brokers waited more than two hours to hear the status of their orders.
In addition to poor decision-making allegations, SEC also said it is charging violations of Nasdaq series of technical rules.
Nasdaq assumption of $ 1.08 billion profit over 300 million shares of Facebook unauthorized account and covered short positions in short positions, two violations of exchange rules, the U.S. Securities and Exchange Commission said.
The agency also said it has found other problems involve more technical failure unrelated to Facebook. In this case, in October 2011 and August 2012, burrs leadership exchange violated rules requiring investors to get the best bid and price, SEC representation.
The settlement agreement calls for exchange of a few technical repair and supporting systems relating to the purchase and sale orders for the IPO.
It must expand its regulatory set of rules for the trading platform coverage and get the team more involved in the decision to change the software.
In his open letter, Greifeld said the Nasdaq has proposed new safeguards.
He said that many of the requirements of the U.S. Securities and Exchange Commission have been met, but he is expected to complete by the end all of the requirements.
 



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