Tags: Nasdaq | Facebook | IPO | Glitch

WSJ: Nasdaq Readies Payouts for Facebook IPO Glitch

Wednesday, 06 Jun 2012 07:36 AM

 

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink
Nasdaq is taking steps toward compensating investor losses due to computer glitches that fouled trading on the first day of Facebook's $16 billion IPO, The Wall Street Journal reported.

Nasdaq OMX Group, which operates the Nasdaq exchange, has told brokers that it expects to submit plans on the issue to the Securities and Exchange Commission on how it might make up losses tied to its systems problems, the Journal reported.

Trading orders on the first day that Facebook shares hit the market on May 18 overwhelmed Nasdaq's systems, forcing a length delay in trades and leaving investors and brokers in the dark over the results of orders involving millions of shares.

Claims of losses related to Nasdaq's problems are estimated above $100 million, according to the Journal.

On May 24 New York broker Knight Capital asked Nasdaq to compensate it for up to $35 million on the IPO.

"As has been well-publicized, there were numerous issues and problems at Nasdaq relating to the trading of Facebook. Some market participants, including the Company, suffered sizable losses," Knight said in the filing.

The claims are well over what the exchange group has available — $13 million, according to the report — to compensate traders who suffer losses due to problems with Nasdaq's system.

In addition at least one class-action lawsuit has been filed in New York against the exchange over claimed losses on Facebook shares due to the systems problems.

© AFP 2014

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved