Morgan Stanley (>> Morgan Stanley) continues to work through trade orders placed on Friday by brokerage customers in Facebook Inc <FB.O> during the social networking company's IPO, two people familiar with the situation said on Thursday.
Morgan Stanley Smith Barney, an affiliate unit of Facebook lead underwriter Morgan Stanley, did not receive from the Nasdaq stock market information about stock trades in a "systematic, orderly way," said one person, who was not authorized to speak publicly on the matter.
Nasdaq said it had all orders, executed or not, returned to member firms by 1:50 p.m. EDT on Friday, according to a trading alert issued by the exchange on Monday morning.
Morgan Stanley on Wednesday told its roughly 17,200 financial advisers that it would review every Facebook order and refund clients who paid too much for their shares. At issue is whether trades were executed and confirmed at the right price.
(Reporting By Joseph A. Giannone; Editing by Gerald E. McCormick)