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Nasdaq wrestles with Facebook compensation

June 6, 2012 at 2:10 AM   |   Comments

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NEW YORK, June 6 (UPI) -- Companies that lost money in the bungled public offering of Facebook shares may get discounts on future trading fees, sources told The Wall Street Journal.

Nasdaq OMX Group is expected to file part of its compensation plan Wednesday with the Securities and Exchange Commission, the newspaper reported Tuesday, citing "people familiar with the matter" on the potential discounts.

Losses because of delays on May 18, the day of Facebook Inc.'s initial public offering, are estimated at $100 million, while Nasdaq has so far earmarked less than $14 million for compensation.

Many financial firms got confirmation of trades only 2 hours after they had placed orders. To put salt in the wound, Facebook Inc. shares have dropped in price by almost one-third since the public offering, finishing Tuesday at $25.87.

"We don't have a clear line of sight yet from the Nasdaq," a broker-dealer executive told the Journal, complaining about the slow pace of dealing with compensation.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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