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.
Nasdaq announced that Facebook will not yet be included in its Nasdaq 100 Index, but the news was not all bad for the social network, as it will be added to the Nasdaq Q-50 Index Sept. 24, bringing it one step closer to the Nasdaq 100.
Add UBS to the list of financial firms that are unhappy with the $62 million settlement proposal by Nasdaq parent Nasdaq OMX Group to compensate firms affected by the technical issues that marred Facebook’s initial public offering, as it followed the lead of Citigroup in sending a long letter to the Securities and Exchange Commission.
While Citadel Securities may have been content with the $62 million settlement proposal by Nasdaq parent Nasdaq OMX Group to compensate firms affected by the technical issues that marred Facebook’s initial public offering, the reaction from Citigroup was quite the opposite.
The $62 million settlement proposal by Nasdaq parent Nasdaq OMX Group to compensate firms affected by the technical issues that marred Facebook’s initial public offering has at least one strong backer in Chicago-based hedge fund Citadel Securities.
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.
As expected, Nasdaq announced its plan to compensate investors affected by the technical issues that marred Facebook’s initial public offering, upping the total that it will pay out to $62 million from its previous proposal of $40 million.
Embattled stock exchange Nasdaq will release its plan to compensate investors affected by the technical issues that marred Facebook’s initial public offering sometime next week, according to a Fox Business report.
The legal hits keep coming for Nasdaq as a result of its technical issues with Facebook’s initial public offering, as Knight Capital Group CEO Tom Joyce told analysts on a conference call that the trading firm continued to weigh its legal options.
Nasdaq exchange parent Nasdaq OMX Group and investors that are suing the company filed papers with the U.S. Judicial Panel on Multi-District Litigation in Manhattan Monday asking that their lawsuits be kept separate from the dozens of suits by Facebook shareholders against the social network due to its bungled initial public offering, Reuters reported.
