UBS, which was one of the facebook IPO's bigger market makers, said it had an automatic trading system in place that kept entering and re-entering orders despite the absence of confirmations that the exchange had carried them out.
Because Nasdaq ultimately processed all these orders, UBS said it ended up with far more facebook shares than its clients had ordered. This resulted in a loss of more than $350 million wiping out nearly half of its second-quarter profit.
