Nasdaq may set aside $10 million to settle probe on Facebook IPO - WSJ

Wed Apr 24, 2013 11:15am IST

A smartphone user logs into his Facebook account in Rio de Janeiro April 15, 2013. REUTERS/Ricardo Moraes

A smartphone user logs into his Facebook account in Rio de Janeiro April 15, 2013.

Credit: Reuters/Ricardo Moraes

Related Topics

Stocks

   

REUTERS - Nasdaq OMX Group Inc(NDAQ.O) is planning to set aside $10 million in anticipation of settling a probe over its botched handling of Facebook Inc's (FB.O) initial public offering last year, the Wall Street Journal reported, citing people familiar with Nasdaq internal discussions.

Nasdaq executives had been hoping for a settlement of about $5 million, the Journal said.

The move follows months of negotiations between the U.S. exchange operator and the Securities and Exchange Commission (SEC), according to the paper. (link.reuters.com/syb67t)

An SEC spokesman declined to comment to the newspaper account. Nasdaq and SEC officials could not be reached by Reuters for comment outside of regular U.S. business hours.

Facebook's eagerly anticipated listing on May 18, which raised $16 billion, was initially delayed by 30 minutes due to a technical glitch at Nasdaq.

The exchange then made the decision to get the stock trading by using a secondary system that ended up leading to delays in many orders and confirmations, costing some investors big losses as the stock price dropped after an initial gain.

In March, U.S. regulators approved Nasdaq's $62 million compensation plan for firms that lost money in Facebook's market debut, far less than the $500 million in estimated losses.

In April, Nasdaq slashed the 2012 annual bonus of chief executive Robert Greifeld by $542,100, citing the Facebook IPO.

(Reporting by Sakthi Prasad in Bangalore; Editing by Matt Driskill)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Economic Pulse

REUTERS SHOWCASE

Indian State Media

Indian State Media

Controlling the message: Modi chooses state media  Full Article 

ONGC Stake

ONGC Stake

Govt meeting bankers to discuss share sale in ONGC - source  Full Article 

Gold Curbs

Gold Curbs

Finance Ministry wants to reimpose curbs on gold imports - ET  Full Article 

World Stocks

World Stocks

Shares advance on strong data, earnings  Full Article 

IBM Chip Unit

IBM Chip Unit

IBM to pay Globalfoundries to take chip unit  Full Article 

Eyeing Reebok

Eyeing Reebok

Investor group aims to buy Reebok unit - WSJ  Full Article 

Reuters India Mobile

Reuters India Mobile

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