Nasdaq Errors Nix Goldman, HP, Sprint Trades
December 13, 2012
The U.S. Securities and Exchange Commission is reviewing Nasdaq’s plan to pay brokers $62 million for losses related to the Facebook IPO in May. The exchange’s so-called opening cross, which sets the first traded price for Facebook, failed to operate properly on May 18. The failure to disseminate confirmations about orders submitted into that opening cross for more than two hours led to investor and brokerage confusion about transactions and prevented them from taking actions to reduce their risks.