[ by Melanie Gretchen ]

Nasdaq is negotiating at least 2 settlements relating to the botched Facebook IPO:  (i) with market makers of the exchange, who claim to have lost $500 million;  and, (ii) with the SEC over the exchange's mishandling of the customer orders for the Facebook IPO. 

Nasdaq has offered its market making firms a total settlement package of $62 million.  The SEC, which must approve any such settlement, says it needs another 2 months to make a decision - i.e., through at least the end of March.  Firms like UBS and Citigroup have filed the largest loss claims against Nasdaq.  Yet, even the smaller firms have sizable claims against Nasdaq - when means the exchange has virtually no safe haven among any of the Wall Street trading firms.  A revolution is likely to break out on the day the SEC announces its conclusions.

As far as any fine or monetary sanction that the SEC might levy on Nasdaq OMX, the word on the Street is that the parties are leaning toward a $5 million fine against Nasdaq OMX for its failures during the offering.  The SEC is investigating Nasdaq's performance in the Facebook IPO as part of a more extensive investigation into the effectiveness of regulatory oversight by SROs and exchanges.

Nasdaq said it's working cooperating with the SEC's investigation on the events from 5/18/12, and will continue to act appropriately and in the best interests of investors."

[Financial Times, 2/6/13]