Nasdaq in settlement talks with SEC over Facebook IPO: WSJ

Wed Feb 6, 2013 6:29am IST

The Facebook logo is seen on a screen inside at the Nasdaq Marketsite in New York May 18, 2012. REUTERS/Shannon Stapleton/Files

The Facebook logo is seen on a screen inside at the Nasdaq Marketsite in New York May 18, 2012.

Credit: Reuters/Shannon Stapleton/Files

Stocks

   

REUTERS - Nasdaq OMX Group Inc (NDAQ.O) is in preliminary talks with U.S. securities regulators over a possible settlement for the glitch-ridden stock market debut of social networking site Facebook Inc (FB.O), the Wall Street Journal reported on Tuesday, citing people with knowledge of the discussions.

A settlement with the Securities and Exchange Commission would likely include a $5 million penalty for Nasdaq, the newspaper said.

Major market makers and broker dealers say they lost upward of $500 million because of technical glitches during Facebook's May 18 stock market debut.

"We are working closely with the Securities and Exchange Commission to resolve issues that arose from the events of May 18," Nasdaq spokesman Joe Christinat told Reuters.

Nasdaq offered a compensation plan in September of $62 million for firms harmed in the debut, but the proposition received mixed reviews with UBS AG UBSN.VX (UBS.N), Citigroup Inc (C.N) and other parties speaking out against it.

The SEC could not immediately be reached for comment by Reuters outside of regular business hours.

(Reporting by Tej Sapru in Bangalore, additional reporting by John McKrank in New York; Editing by Cynthia Osterman)

FILED UNDER:

INTERNAL SECURITY

REUTERS SHOWCASE

Setback For Sahara

Setback For Sahara

Supreme Court defers verdict on Sahara plea to raise more debt on hotels  Full Article 

SpiceJet Crisis

SpiceJet Crisis

SpiceJet says fleet grounded on lack of fuel  Full Article 

Drug Patents

Drug Patents

Novartis sues Cipla over respiratory drug Onbrez   Full Article 

Boost for Tata Steel

Boost for Tata Steel

Tata Steel restarts key iron mines amid shortage  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

India Outlook

India Outlook

ADB trims growth forecasts for developing Asia, says India to grow 5.5 pct in 2014  Full Article 

Real Estate

Real Estate

HDFC to raise $500 mln real estate private equity fund - sources  Full Article 

Banking Sector

Banking Sector

Japan banks to bulk up India presence on improving ties   Full Article 

U.S. Spending Bill

U.S. Spending Bill

Obama signs bill $1.1 trillion government spending bill  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage