MSSB tells brokers it will make good on Facebook trades: Source

MSSB tells brokers it will make good on Facebook trades: Source
Brokerage also said to informs reps it will not fill limit orders at $43 due to low volume
MAY 24, 2012
By  John Goff
Morgan Stanley Smith Barney, the world's biggest brokerage, told its financial advisers yesterday that it will adjust prices on a few thousand client trades of Facebook Inc. (FB), according to a person on the conference call. The company also told brokers that limit orders to sell shares for at least $43 each after the social network's initial public offering won't be filled because of low volume at that price range on May 18, said the person, who requested anonymity because the call was private. Morgan Stanley Smith Barney told brokers May 23 it was reviewing pricing and execution of orders, according to a memo obtained by Bloomberg. Nasdaq Stock Market trade confirmations were delayed and some orders may have been mishandled by the exchange. The IPO was marred on the first trading day when Nasdaq OMX Group Inc. was overwhelmed by order cancellations and updates that delayed trading in Facebook shares. The U.S. Securities and Exchange Commission said it will conduct a review. Facebook's underwriters had gains of about $100 million through their work to stabilize the share price since the IPO, a person familiar with the matter said May 23. Morgan Stanley (MS) will use some of the gains to reimburse clients who lost money because of glitches in trade execution, the person said. Morgan Stanley Smith Barney, which is owned by Morgan Stanley and Citigroup Inc. (C), had more than 17,000 advisers and $1.74 trillion of client assets as of March 31. --Bloomberg News--

Latest News

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a mother-son tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

Women share investing strengths, asset preferences in new study
Women share investing strengths, asset preferences in new study

Financial advisors remain vital allies even as DIY investing grows

Trump vows to 'be nice' to China, slash tariffs
Trump vows to 'be nice' to China, slash tariffs

A trade deal would mean significant cut in tariffs but 'it wont be zero'.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.