[ by Melanie Gretchen ] Knight Capital Group has agreed to participate in the Nasdaq OMX $62 million all-cash compensation plan that the Exchange intends to distribute among all Nasdaq members claiming losses resulting from technical glitches and apparent negligence on the part of The Nasdaq Stock Exchange.  A group of Nasdaq market-makers and other broker-dealers claim to have lost an estimated $500 million. Knight criticized Nasdaq for its initial offer of $40 million - a combination of cash and trade rebate credits.  What Knight agreed to was Nasdaq's revised offering - $62 million, all cash. Knight's decision was made known in an 8/29/12 letter the firm issued to the SEC.  However, Knight did not endorse everything in Nasdaq's compensation plan.  Knight asked the SEC to delete or reject language in that plan stating that participation in the compensation plan waives a firm's rights to subsequently sue the Exchange. Knight admitted it would rather have been fully reimbursed.  [C-I Note: Knight alone lost $35 million.]  Nevertheless, it would accept its pro rata distribution from the $62 million pool - which will not begin to approach its $35mn loss. For additional reading, go to C-I's 8/30/12 posting in BEHIND THE NEWS, "Knight Qualifies Its Acceptance of Nasdaq’s $62Mn Facebook Compensation Plan."] For further details, go to [Reuters, 8/30/12].