Tuesday, June 5, 2012

Feds probing Nasdaq’s $10.7M Facebook profit





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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