Subscribe to our mailing list

* indicates required

 

 

 

 

BROWSE BY TOPIC

ABOUT FINANCIALISH

We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.

 

Stay Informed with the latest fanancialish news.

 

SUBSCRIBE FOR
NEWSLETTERS & ALERTS

FOLLOW US

Archive

Nasdaq's $62Mn Settlement Offer: Not Enough

August 22, 2012
[ by Melanie Gretchen ] Today, Wednesday, August 22, is the last day for companies to be included in Nasdaq's $62 million settlement for its technical glitches during the Facebook IPO.  While Nasdaq OMX Group stands firm in its compensation offer, actual losses totaled about $500 million.  [C-I Note: In other words, not even close.] What's at Stake. In SEC filings, firms that facilitated trades for retail clients say they lost upward of $500 million in the $16 billion IPO on 5/18/12, for which broker Vandham Securities said in an 8/21/12 filing Nasdaq should more fully compensate.  Nasdaq's all-cash offer in reimbursements is $22 million larger than the exchange originally proposed.  The original proposal, made up mostly of trading rebates, was met with protests from other exchanges and market makers. Nevertheless, Triad Securities argued in a separate, 8/20/12 filing that the firm believes "Nasdaq's theory of compensation is based on factual error."  The other top retail market-makers involved in the IPO were UBS AG, Knight Capital Group, and Citigroup Automated Trading Desk.  [C-I Note: Considering those firms aren't going anywhere soon, Nasdaq might be well served to up its offer.  We shall soon see.] For further details, go to [CNBC, 8/22/12].