Nasdaq to compensate firms on December 31 for botched Facebook IPO

By way of John McCrank NEW YORK (Reuters) – Nasdaq OMX Group Inc will compensate firms on December 31 for qualifying claims associated to Facebook Inc's botched May just 2012 preliminary public providing, the alternate operator mentioned in a observe to merchants on Friday. Nasdaq mentioned prior to now it would pay as much as $forty one.6 million in claims to market individuals that lost money when a glitch in Nasdaq's machine all the way through the IPO prevented timely order confirmations for a lot of traders, leaving them not sure about their exposure for hours and, in some cases, for days afterwards. Nasdaq stated a complete of $forty one.6 million in claims certified for compensation, even if market makers estimated they lost $500 million at the same time. Corporations that qualified for compensation had until December 23 to agree to not sue Nasdaq over the IPO so as to be eligible for a one-time voluntary payout.