UPDATE: Nasdaq Approves $40M Voluntary Accommodations Fund for Facebook (FB) IPO
(Updated - June 6, 2012 1:05 PM EDT)
The Boards of The NASDAQ OMX Group and The NASDAQ Stock Market are seeking review by the Securities and Exchange Commission of a one-time voluntary accommodations program for qualifying members who were disadvantaged by technical problems that arose during the Facebook IPO cross on May 18. The technical problems experienced on that date have been remedied.
The NASDAQ OMX Group Board considered several factors to determine the scope of the accommodation program including:
The independent Financial Industry Regulatory Authority (FINRA) has agreed to evaluate claims submitted by firms under the voluntary accommodations program. NASDAQ OMX has issued an Equity Trader Alert advising members on how to request accommodations.
Members will qualify for accommodation if:
Finally, NASDAQ OMX has selected IBM to conduct a thorough review of the current state of processes for designing, developing, testing, deploying and operating market systems.
The Boards of The NASDAQ OMX Group and The NASDAQ Stock Market are seeking review by the Securities and Exchange Commission of a one-time voluntary accommodations program for qualifying members who were disadvantaged by technical problems that arose during the Facebook IPO cross on May 18. The technical problems experienced on that date have been remedied.
The NASDAQ OMX Group Board considered several factors to determine the scope of the accommodation program including:
- The history and precedent of NASDAQ Rule 4626, which established a $3 million ceiling for accommodation funds
- NASDAQ's estimated Facebook-related revenues over the next five years ($7 million)
- NASDAQ's error account on May 18, 2012 ($10.7 million)
The independent Financial Industry Regulatory Authority (FINRA) has agreed to evaluate claims submitted by firms under the voluntary accommodations program. NASDAQ OMX has issued an Equity Trader Alert advising members on how to request accommodations.
Members will qualify for accommodation if:
- They were directly disadvantaged due to technical problems on the part of NASDAQ prior to the start of continuous trading at 11:30 a.m.; and
- They had uncertainty regarding their IPO cross position.
- Sells priced at $42 or less that did not execute
- Sells priced at $42 or less that executed at an inferior price
- Buys priced at $42 that were executed in the cross but not immediately confirmed
Finally, NASDAQ OMX has selected IBM to conduct a thorough review of the current state of processes for designing, developing, testing, deploying and operating market systems.
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