Nasdaq Defends Its Plan To Compensate Firms Affected By Facebook IPO Issues

By David Cohen 

Embattled stock exchange Nasdaq countered objections to its plan to compensate firms affected by the technical issues that marred Facebook’s initial public offering, saying in a letter to the Securities and Exchange Commission earlier this week that none of the points brought up by critics of the plan was enough for the SEC to reject it.

The Wall Street Journal reported that Nasdaq said in its letter:

The proposed accommodation pool goes well beyond what is required under current Nasdaq rules and specifically prioritizes the compensation of investors.

According to the Journal, the SEC may not reach a decision until 2013.

Wall Street firms including UBS, Citigroup, Citadel Securities, and Knight Capital Group have weighed in on the stock exchange’s proposal to pay out a combined $62 million to affected firms, with the former two criticizing the plan and the latter two expressing their support for it.

Readers: What do you think the SEC will decide?