The Securities and Exchange Commission approved Nasdaq's plan to pay $62 million to trading firms that incurred losses during Facebook's botched public debut last May.
The four major trading firms -- Knight Capital (KCG), Citadel, Citigroup (C) and UBS (UBS) -- lost a combined $500 million due to technical glitches at the Nasdaq during Facebook's initial public offering.
And while the accommodation plan won't compensate the firms in full, the SEC said it will "create a means of providing significantly more compensation for eligible claims, outside of litigation, than would otherwise be available."
If the SEC had rejected the plan, Nasdaq would have only been permitted to issue $3 million in compensation, according to current SEC rules.
UBS, which said it alone lost more than $350 million and previously called Nasdaq's plan "inadequate" and "insufficient," said in an email to CNNMoney that the SEC's approval does not change its opinion. The firm reiterated that it has already filed an arbitration claim against Nasdaq for the full amount of its losses that it says was due to Nasdaq's "gross mishandling of the Facebook IPO."
Citi, which had also called the proposal "insufficient" and said it should be "rejected," declined to comment.
Knight and Citadel had previously written to the SEC in support of Nasdaq's proposal, with Citadel managing director and general consul John Nagel calling the plan "objective and fair." Both firms had no comment Monday.
Norwegian Cruise Line (NCLH) sailed more than 30% above its initial public offering prices when its shares debuted on the Nasdaq (NDAQ) Friday.
The third largest cruise ship operator in North America sold 23.5 million shares for $19 apiece -- slightly better than the estimated range of $16 to $18.
Norwegian Cruise Line plans to use part of the $446 million it raised to pay down some of its $3.1 billion MOREMaureen Farrell - Jan 18, 2013 11:49 AM ET
The battle for the hottest IPOs among stock exchanges is fierce, and it looks like the New York Stock Exchange has won first prize.
Early in the year, it looked like Nasdaq (NDAQ) would be a shoe-in, after it landed the Facebook (FB) listing.
Of course, the Facebook IPO was an epic flop, and the New York Stock Exchange (NYX) ultimately edged ahead of its rival.
The NYSE landed the majority, or MOREMaureen Farrell - Dec 27, 2012 3:19 PM ET
SolarCity (SCTY) is shining on its first day of trading.
In its debut on Nasdaq (NDAQ) Friday, SolarCity closed 47% above its $8-a-share initial public offering price.
To get that pop, SolarCity was forced to scale back its expectations. The company had originally tried to price its offering between $13 and $15, which would have given it a valuation close to $1 billion, and raised $141 million.
Even though the company upped MOREMaureen Farrell - Dec 13, 2012 12:50 PM ET
Facebook will make its way into the Nasdaq-100 (NDX) next week, but the social network could find itself in the even more widely tracked S&P 500 (SPX) soon enough, too.
According to Standard and Poor's methodology, "initial public offerings should be seasoned for 6 to 12 months before being considered for addition to an index." Facebook (FB) just celebrated its six-month birthday as a public company a little over two weeks ago.
While MOREHibah Yousuf - Dec 6, 2012 1:41 PM ET
Facebook is joining a new social network -- the Nasdaq-100 to be precise.
The California-based social media company will join the elite index on Dec. 12, replacing Infosys, an Indian tech company that is moving its U.S. listing to the New York Stock Exchange.
The move is not exactly a surprise. The Nasdaq-100 includes the 100 largest non-financial securities trading in the market. And with a market capitalization of around $60 billion, Facebook MORECharles Riley - Dec 4, 2012 11:41 PM ET
YY, the first Chinese company to brave the U.S. initial public offering market since April, was expected to meet a wary investor base Wednesday. Yet YY's (YY) stock managed to rise 10% in its debut on Nasdaq (NDAQ).
A Chinese Internet social media platform with a focus on gaming and video chats, YY, priced its offering at $10.50, the low end of its expected range. The company raised $82 million for MOREMaureen Farrell - Nov 21, 2012 11:04 AM ET
IAC/InterActiveCorp shares took a tumble Wednesday, amid confusion surrounding the company's 2013 forecast.
Prior to the market's opening bell Wednesday -- IAC, which runs sites like Ask.com, Dictionary.com and Match.com -- issued third-quarter earnings that topped Wall Street's expectations. Following the release but prior to its earnings call, IAC said it expects to report an operating loss for its "media and other" segment in 2013 in a filing with the Securities and Exchange MOREHibah Yousuf - Oct 24, 2012 6:11 PM ET
Another week: another bizarre trading glitch. This time around, Kraft's stock whipsawed in the first 60 seconds of the trading day.
After closing at $45.48 Tuesday, shares of Kraft (KRFT) spiked nearly 29% in the first minute of trading Wednesday, to $58.54. By 10:32 a.m. ET, Nasdaq, NYSE Arca and BATS cancelled all trades in Kraft that came in at or above $47.82, according to spokespersons at both exchanges.
Under Securities and MOREMaureen Farrell - Oct 3, 2012 3:17 PM ET
Nasdaq defended its proposed $62 million compensation plan for firms hurt by its botched IPO of Facebook (FB).
In a letter sent to the Securities and Exchange Commission late Wednesday, Nasdaq (NDAQ) called the payout "fair and equitable."
The exchange operator told the SEC that, by law, it only owes trading firms, or so-called market makers, $500,000 based on SEC limits. "The proposed accommodation pool goes well beyond what is required under current MOREMaureen Farrell - Sep 20, 2012 2:17 PM ET
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