NASDAQ To Compensate Facebook IPO Losers

NASDAQ To Compensate Facebook IPO Losers


After openly admitting that it screwed up over Facebook’s IPO, NASDAQ is now planning to compensate those who made a loss when their systems failed to allow trades to take place.

The losses were the result of a 30-minute delay in trading, which left brokers with millions of shares’ worth of unconfirmed trades, and totalled over an estimated $US100 million, according to the Wall Street Journal.

In the first instance, NASDAQ is planning to pay out more than $US13.7 million in compensation. The Wall Street Journal reports that the form of the payout is so far unconfirmed, though it may come as discounted trading fees for the financial firms that lost money.

In fact, current rules state that NASDAQ is limited to paying out just $US3 million a month to brokers and traders that suffered losses — so it looks like the process will be long and slow.

Meanwhile, Facebook’s stock continues to sink, dropping to $US25.87 on Tuesday, June 5. [Wall Street Journal]


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