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5 years ago
Citadel urges SEC to approve Nasdaq's Facebook compensation plan
August 21, 2012 / 9:23 PM / 5 years ago

Citadel urges SEC to approve Nasdaq's Facebook compensation plan

NEW YORK, Aug 21 (Reuters) - Citadel LLC urged regulators to approve Nasdaq OMX Group's $62 million compensation plan for firms harmed by Facebook's May 18 glitch-ridden initial public offering.

Citadel's market making unit bought and sold over $3.8 billion worth of Facebook stock during the IPO and "incurred losses protecting retail investors from the problems caused by Nasdaq," the firm said in a letter to the U.S Securities and Exchange Commission on Tuesday.

Nasdaq filed its all-cash plan with SEC in July.

Regulations cap the exchange's liability at $3 million a month for problems caused by technology issues, and the Facebook accommodation plan would temporarily raise that amount.

"While the extent of exchange immunity from liability for mishandling orders is an important and complex public policy issue, we submit that any commission consideration of this issue should be addressed at a later time," Citadel said.

Citadel lost around $30 million due to the IPO, a person familiar with the situation previously told Reuters.

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