(PRWEB) June 23, 2013
According to a report on the 29 May 2013 in the New York Times, NASDAQ will have to pay one of the heftiest fines in history – a princely $10 million dollars for its security violations and lax policies, which the exchange was responsible for during the IPO of Facebook.
The New York Times report, elaborates the guilt of NASDAQ whose system which is responsible for matching the various IPO buy and sell orders, suffered a glitch, which compounded by a slew of poor managerial decisions resulted in disruption of Facebook’s stock offering.
The senior management of NASDAQ discovered the design limitations of their system and yet decided go ahead with the secondary market trading of the stocks of Facebook. Their decision was based on the mistaken belief that the problem had been fixed by the correcting and removing a few computer codes from their system.
As a result of this decision, there were several violations of important rules. The SEC report elaborated one such violation according to which, several thousand stocks of Facebook remained stuck in the software system of NASDAQ, when they either should have been cancelled or executed. There was a delay of almost two hours before these stocks were processed and even though the officials at Facebook realized the error and did so before the orders got stuck, they failed to quickly come up with a workable solution to fix the problem.
According to Samuel Junghenn, one of Australia's most reputed social media consultants, bloggers across the Internet feel that even though the fine is the highest ever paid by an exchange, it should have been more.
Samuel, who has helped several companies manage their reputation online, feels that this would severely dent reputation of NASDAQ and would cause people to lose faith in the company. Samuel explains, “While a lot of people would excuse the problem because it was resulted by a computer glitch, it has also been revealed an unauthorized system was used by the company to short the stocks of Facebook. This actually enabled NASDAQ to earn a major profit of more than $10 million dollars, which is ironically more than the fine it has been forced to pay by the SEC.”
About Think Big Online
Founded by Samuel Junghenn, Think Big Online has helped numerous businesses and financial agencies manage their online reputation by removing slanderous comments against them on social media platforms.