GO
Loading...

Nasdaq in Settlement Talks With SEC Over Facebook IPO: Report

Daniel Acker | Bloomberg | Getty Images

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.

(Read More: Facebook vs. Twitter: The Real-Time Battle)

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.

(Read More: Facebook Rolls Out Social Search Feature)

"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.

(Read More: Facebook Earnings Beat, Profit Margin Falls Sharply)

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