The Securities and Exchange Commission announced Monday that it will more closely examine the plan by Nasdaq to shell out $62 million to compensate firms that were affected by the technical issues that marred Facebook’s May 18 initial public offering.
According to Reuters, the SEC’s decision was spurred by “legal and policy issues raised” by other players in the financial markets, and the agency said:
The commission believes that questions are raised as to whether Nasdaq’s accommodation proposal … would promote just and equitable principles of trade, protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
According to Reuters, Nasdaq Chief Executive Robert Greifeld (aid earlier this month:
To the extent the SEC requires more time, then we would agree to that, so I’m not here to predict what they may do, but end of the year is a reasonable guess.
Readers: How do you believe the SEC will end up ruling on Nasdaq’s compensation proposal?