US regulators approve plan for lost Facebook IPO money
US regulators on Monday approved a plan to compensate market makers who lost money in a botched Facebook Inc public offering in May on the Nasdaq exchange.
March 25, 2013 / 21:01 IST
US regulators on Monday approved a plan to compensate market makers who lost money in a botched Facebook Inc public offering in May on the Nasdaq exchange.
Nasdaq, a unit of Nasdaq OMX Group Inc
, has proposed a revised USD 62 million settlement to those brokerages that lost money.
The decision from the US Securities and Exchange Commission was in response to a series of high-profile glitches last year that shook the market, including the handling of Facebook's long-anticipated initial public offering.
The May 18 IPO, which raised USD 16 billion, was initially delayed by 30 minutes due to a technical problem at Nasdaq.
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The exchange then decided to get the stock trading by using a secondary system that ended up leading to delays of many clients' orders and confirmations. This cost some investors and traders big losses as the stock price dropped after an initial gain. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
