Nasdaq Catches Flak For Proposal To Remedy Facebook IPO Issues

Nasdaq’s proposal to compensate traders and investors affected by its technical issues with Facebook’s initial public offering is already meeting resistance in the financial community.

Nasdaq’s proposal to compensate traders and investors affected by its technical issues with Facebook’s initial public offering is already meeting resistance in the financial community.

The embattled exchange filed a proposal with the Securities and Exchange Commission in which it detailed a one-time payout of some $40 million to compensate affected firms, to be made up as follows: $13.7 million in cash from the $10.7 million profit Nasdaq made on the first day of Facebook trading May 18, as well as the maximum $3 million regulators allow exchanges to pay out due to trading issues, with trading discounts over the next six months making up the remainder.

Speaking

AW+

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

To Read the Full Story Become an Adweek+ Subscriber

View Subscription Options

Already a member? Sign in