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

Farther debuts AI investment proposal tool for advisors to win clients
Farther debuts AI investment proposal tool for advisors to win clients

"Im glad to see that from a regulatory perspective, we're going to get the ability to show we're responsible [...] we'll have a little bit more freedom to innovate," Farther co-founder Brad Genser told InvestmentNews.

Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler
Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler

Former advisor Isaiah Williams allegedly used the stolen funds from ex-Dolphins defensive safety Reshad Jones for numerous personal expenses, according to police and court records.

Are you optimally efficient?
Are you optimally efficient?

Taking a systematic approach to three key practice areas can help advisors gain confidence, get back time, and increase their opportunities.

Advisor moves: Father-son duo leaves Raymond James for LPL, RayJay adds Merrill Lynch alum in Florida
Advisor moves: Father-son duo leaves Raymond James for LPL, RayJay adds Merrill Lynch alum in Florida

Meanwhile, Osaic lures a high-net-worth advisor from Commonwealth in the Pacific Northwest.

Beacon Pointe adds six RIAs in two-month acquisition spree, boosting AUM by $2.7B
Beacon Pointe adds six RIAs in two-month acquisition spree, boosting AUM by $2.7B

The deals, which include its first stake in Ohio, push the national women-led firm up to $47 billion in assets.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.