Nasdaq CEO Robert Greifeld defended the stock exchange’s plan to compensate firms affected by the technical issues that marred Facebook’s initial public offering during parent company Nasdaq OMX Group’s second-quarter earnings call Wednesday morning.
The Wall Street Journal’s Deal Journal blog reported that Greifeld called the compensation plan the exchange announced Monday its “definitive” response, adding that Nasdaq has “substantial legal and factual defenses” to rebut any lawsuits by traders claiming losses from the Facebook IPO.
Greifeld said the settlement proposal was “entirely voluntary on our part,” and he did not expect Nasdaq to suffer any impact in terms of credit ratings, adding that he expected the plan to be approved at some point during the fourth quarter, and saying:
We believe this proposal reflects the hard work that went into it. That’s our definitive word on the topic.
Greifeld’s comments do not mean the drama is over, however, as IBM is scheduled to issue its report evaluating Nasdaq’s trading systems and what went wrong sometime next week.
Readers: Do you think Nasdaq’s $62 million settlement proposal was fair?