SEC's Philly-based 'Abuse Tax Force' fines Nasdaq $10M for bungled Facebook IPO

NASDAQ Facebook
News about the Facebook IPO passes on a billboard outside of NASDAQ in Times Square, New York, Tuesday, May 15, 2012. Facebook on Tuesday increased the price range at which it plans to sell stock to the public, as investor enthusiasm in the offering continued to mount and boost the potential value of the world's most popular social network. (AP Photo/Seth Wenig)

The Securities and Exchange Commission has hit the Nasdaq stock market with a $10 million penalty for bungling Facebook's initial public stock offering last year.

According to the SEC, Nasdaq went ahead with the IPO even though it knew it had a software glitch, which ended up causing 30,000 share orders to pile up unfilled, potentially costing investors many millions.

Daniel Hawke, head of the Philadelphia SEC office and of the SEC's Market Abuse Task Force, oversaw the team that brought the case. Read the SEC's summary here, see also a link to the SEC's settlement order.