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