Nasdaq to Pay SEC $10 Million Over Facebook IPO

NEW YORK ( TheStreet) -- Nasdaq ( NDAQ) is paying a $10 million fine to the Securities and Exchange Commission for charges related to the Facebook ( FB) IPO debacle.

The Securities and Exchange Commission charged Nasdaq with violations of securities laws resulting from its poor systems and decision-making during Facebook's IPO last May. As a result, Nasdaq has agreed to settle the charges, paying the largest fine ever for an exchange.

In March, Nasdaq agreed to pay Facebook investors $62 million, in a plan approved by the SEC.

"This action against NASDAQ tells the tale of how poorly designed systems and hasty decision-making not only disrupted one of the largest IPOs in history, but produced serious and pervasive violations of fundamental rules governing our markets," said George S. Canellos, Co-Director of the SEC's Division of Enforcement in the press release.

The New York-based electronic exchange isn't the first to agree to a fine related to the Facebook IPO debacle. In December, Morgan Stanley ( MS) also settled, paying $5 million.

-- Written by Chris Ciaccia in New York

>Contact by Email.

If you liked this article you might like

Walt Disney, Tiffany, NASDAQ, Mazor Robotics: 'Mad Money' Lightning Round

A Ferocious Rotation: Cramer's 'Mad Money' Recap (Friday 6/9/17)

Profits Trump Economic Weakness: Cramer's 'Mad Money' Recap (Friday 6/2/17)

The Stock Market Has Been Amazingly Resilient -- Check Out These 10 Charts