Nasdaq in Settlement Talks With SEC Over Facebook IPO: Report
Nasdaq OMX Group 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, the Wall Street Journal reported on Tuesday, citing people with knowledge of the discussions.
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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.
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"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, Citigroup and other parties speaking out against it.
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The SEC could not immediately be reached for comment by Reuters outside of regular business hours.