Regulators are looking into how Nasdaq made money during its
fumbled Facebook stock offering.
Sources tell The Post that the Securities and Exchange
Commission is probing to see how the exchange operator run by CEO Bob Greifeld
made a $10.7 million profit while trading off the social media company’s
shares.
Nasdaq bought and sold so-called “orphaned” shares during
the early period of trading in order to facilitate trading of the stock as
technical glitches created a logjam in the early frenzied moments of trading on
May 18. And some of the issues the agency is believed to be looking
at is whether the exchange made its trades ahead of clients and other
participants, sources said. The regulators also is looking into whether the
trading systems at other Nasdaq member firms made matters worse...
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