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 Nasdaq rules and specifically prioritizes the compensation of investors," Nasdaq's senior vice president, Joan Conley, wrote in the letter.
Nasdaq originally offered $40 million in June, but a month later, it raised the payout to the current $62 million, which Nasdaq CEO Bob Greifeld called "definitive." At the time, customers publicly excoriated Greifeld and Nasdaq for under-compensating investors.
But most eventually came around. Nasdaq said in its letter that the "vast majority of its 560 members have raised no objections to the plan.
Even Knight Capital Group (KCG) -- one of the most vocal opponents -- and Citadel changed their tune.
Knight, of course, ran into own trading glitches in early August. Some in the industry have called Knight's own nearly fatal technical glitches karmically-induced (Knight CEO Tom Joyce was Nasdaq's most vocal and persistent critic).
Nasdaq's stock regained all the ground it lost in the wake of Facebook's botched debut. Facebook, however, hasn't been as lucky. Despite a recent rally, Facebook's shares are still down 40% from its IPO price.
Knight Capital, once one of the fiercest critics of Nasdaq's Facebook compensation plan, has done a 180-degree turn.
"We support Nasdaq's efforts to reimburse its member firms for losses caused by Nasdaq's actions and decisions during the first day of trading in FB," Leonard Amoruso, Knight's general counsel, wrote in a letter to the SEC late Wednesday.
No one expected Facebook (FB) to debut at the opening bell on May 18, but MORECatherine Tymkiw - Aug 30, 2012 2:44 PM ET
Banks have had their share of bad publicity recently, but investors continue to give them the benefit of the doubt.
Standard Chartered (SCBFF) is a prime example.
The British bank's stock has recouped nearly all of the losses sustained earlier this month, when the bank was accused of laundering money for Iran.
U.S.-listed shares plunged to a low of $18.65 on Aug. 7, one day after banking regulators in New York threatened to MOREBen Rooney - Aug 24, 2012 7:04 AM ET
Nasdaq can't seem to put the Facebook IPO debacle behind it.
Shortly after the botched IPO, Nasdaq proposed a $40 million settlement to compensate brokers who were affected by trading glitches on Facebook's opening day (May 18).
Nasdaq (NDAQ) upped that figure to $62 million in mid-July, and Nasdaq CEO Bob Greifeld called it "definitive" during a July 25 conference call with analysts.
Citigroup (C) and UBS (UBS) have come out swinging. In MOREMaureen Farrell - Aug 23, 2012 12:33 PM ET
UBS said Tuesday that it lost $356 million on Facebook's IPO due to Nasdaq's trading glitches during the company's market debut in May -- and it plans to sue the stock exchange for every cent of it.
"UBS's loss resulted from NASDAQ's multiple failures to carry out its obligations, including both opening the Facebook (FB) stock for trading and not halting trading in the stock during the day," said UBS in MOREHibah Yousuf - Jul 31, 2012 2:16 PM ET
Wall Street has been playing a game of musical chairs, and the tempo is picking up.
From UBS to Deutsche Bank to JPMorgan Chase to Citigroup, executives are hopping to rival banks at a rapid clip. With low trading volume and tough market conditions, many chairs are also vanishing when the music stops.
Among the lost chairs so far: Mitch Moore, the global head of UBS's (UBS) prime brokerage unit, resigned last MOREMaureen Farrell - Jun 18, 2012 1:50 PM ET
Credit Suisse and UBS need to raise additional capital and should cut back on their dividend payments to investors, the Swiss National Bank said Thursday.
The two largest Swiss banks need to raise more capital and show "dividend restraint," said the SNB in its latest financial stability report, which noted that the banks have made progress toward meeting international capital requirements, but both need additional buffers to ensure resilience "given the MOREBen Rooney - Jun 14, 2012 11:21 AM ET
|Milo Yiannopoulos resigns from Breitbart amid child sex comments|
|Tech's beloved H-1B visa is flawed. Here's why.|
|Wells Fargo fires 4 senior employees for ties to fake account scandal|
|The 15 worst cities for rush hour traffic|
|How Trump could make the trade deficit look worse|