Facebook IPO Review Finds No Listing Violations

Regulators probing Facebook listing on the Nasdaq Stock Market haven't found any evidence of industry rule violations and view the botched offering as a technical failure, according to a person familiar with the matter.

Members of Congress, regulators and state officials are looking for foul play nearly two weeks after one of the largest initial public offerings fizzled during its first day on Nasdaq, leading to an estimated $100 million in initial trading losses. Yet so far, federal regulators have found no clear-cut signs that securities laws or industry rules were broken, at least in the actual listing on Nasdaq OMX Group’s exchange, the person said. Even if there are no violations in the technical exchange listing, a large group of investors is disappointed by the trading hiccups and steep stock declines, leading to complaints about other aspects of IPO, including disclosures by the underwriters. When its own review is complete, the Securities and Exchange Commission may recommend adjusting rules for the pricing of IPOs, perhaps temporarily delaying trading of a stock after the initial price is set, the person said.