Defendant Name:
The NASDAQ Stock Market, LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
NASDAQ OMX
SIC Code:
6200
CUSIP:
63110310
Document Reference:
34-69655
Document Details
Legal Case Name
In the Matter of The NASDAQ Stock Market, LLC and NASDAQ Execution Services, LLC
Document Name
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 19(h)(1) and 21C of the Securities Exchange Act of 1934, Making Findings and Imposing Sanctions and a Cease-and-Desist Order
Document Date
29-May-2013
Document Format
Administrative Proceeding
Allegation Type
Securities Offering
Document Summary
On May 29, 2013, the SEC issued an order instituting an administrative and cease-and-desist proceedings against the NASDAQ Stock Market, LLC and NASDAQ Execution Services, LLC. in relation to Facebook's IPO. According to the SEC: "In April 2012, Facebook, Inc. ('Facebook') announced that it had selected NASDAQ as its listing exchange. The Facebook IPO was widely anticipated to be among the largest in history, with huge numbers of institutional and retail investors expressing interest in participating. On May 18, 2012, the eyes of the investing world were focused on the Facebook IPO. Unfortunately, as a result of a design limitation in NASDAQ's IPO Cross system, neither the IPO itself nor secondary market trading in Facebook proceeded as expected. The decisions made by NASDAQ in response to trading disruptions that resulted from the design limitation led to further downstream systems issues and caused NASDAQ to violate a fundamental rule governing order priority as well as several other Commission and NASDAQ rules." On May 29, 2013, the SEC announced that it had accepted The NASDAQ Stock Market, LLC and NASDAQ Execution Services, LLC's offers of settlement and imposed a cease-and-desist order and remedial sanctions.
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Other Compliance Related Undertaking
Various undertakings
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Self Reporting to SEC
Monetary Penalties:
Civil Penalty
Individual:
$10,000,000.00
Shared:
Other Defendants in Action: