| NEW YORK
NEW YORK Aug 3 Nasdaq OMX Group Inc
expects to incur costs well above the $62 million it has set
aside to pay back firms harmed by the glitch-ridden Facebook
IPO, as it fights lawsuits and updates its systems, it
said in a regulatory filing on Friday.
Nasdaq said it is cooperating with an investigation by the
U.S. Securities and Exchange Commission into the problems at the
exchange during the $16 billion IPO on May 18.
The New York-based exchange operator also said that it is
the subject of eight lawsuits by investors and one by trading
firms for its role in Facebook's problematic debut. Nasdaq said
it believes the lawsuits are "without merit."
"Pending the resolution of these matters, we expect to incur
significant additional expenses in defending the lawsuits, in
connection with the SEC investigation and in implementing
technical changes and remedial measures which may be necessary
or advisable," Nasdaq said in the filing.
Market makers lost upward of $500 million in the IPO, when
many pre-market orders were not confirmed by Nasdaq for several
hours after Facebook trading began, rather than in the usual
milliseconds, leaving traders unsure of what they owned.
UBS AG said last week that it may take legal
action against Nasdaq to recover the more than $350 million it
lost in the IPO.
Knight Capital Group, which on Wednesday lost $440
million when its own software glitch flooded the stock market
with errant trades, recently reported it lost $35.4 million in
the Facebook IPO.