Home
Social networking
Social networking News
Nasdaq in settlement talks with SEC over Facebook IPO: Report

Nasdaq in settlement talks with SEC over Facebook IPO: Report

By Reuters | Updated: 6 February 2013 14:51 IST

Nasdaq OMX Group Inc 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, 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, Citigroup Inc and other parties speaking out against it.

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

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.