Nasdaq to provide $62 million to compensate clients of Facebook IPO glitches
21 Jul 2012
Nasdaq OMX group would provide funds to the tune of $62 million by way of compensation to clients disadvantaged by technical problems that arose during the Facebook IPO on 18 May.
Nasdaq would offer a $62-million fund for voluntary accommodations, which is $22 million larger than the 6 June proposal, according to the statement of the exchange.
Facebook had started trading publicly on 18 May, following one of the most anticipated stock offerings in history however the public debut of the stock was hit by technical glitches at the Nasdaq Stock Market that delayed trading.
On the opening day, the orders failed to be executed, or ''print'' as in trader parlance. Nasdaq was not able to deliver trade execution messages until mid-afternoon, which left traders in the dark about whether their orders had gone through.
The proposed voluntary accommodation programme would be filed with the Securities and Exchange Commission (SEC), according to Nasdaq.
Robert Greifeld, NASDAQ OMX group chief executive officer and president said, Nasdaq deeply regretted problems encountered during the initial public offering of Facebook