Nasdaq (NDAQ) May End up Paying Fraction of Losses from Facebook (FB) IPO

Article Related Articles (1) Stock Quotes (2) Comments (0)

Nasdaq OMX (Nasdaq: NDAQ) is lower on the session amid reports that it might be in discussions with the U.S. SEC over possible settlement of the botched Facebook (Nasdaq: FB) IPO.

According to the WSJ, glitches on the highly-anticipated public offering amounted to erroneous trades, costing initial investors and traders up to $500 million in losses. However, Nasdaq OMX might end up paying just a percentage of that number.

Nasdaq and the SEC might come to an agreement for Nasdaq to pay a $5 million penalty. In addition, Nasdaq has agreed to compensate customers about $62 million tied to the Facebook IPO losses.

Federal regulations and Nasdaq's own rules helped in limiting losses to the exchange. Shares are down 0.5 percent Wednesday.

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• Tesla (TSLA) Ramps Higher (GM)
• Changes to the NASDAQ Internet Index
• Quarterly Changes to the NASDAQ Golden Dragon China Index

Create E-mail Alert Related Categories

Insiders' Blog

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?