The US Securities and Exchange Commission (SEC) has approved exchange group Nasdaq OMX’s proposal to pay $62m to investors who lost money due to a technical glitch during Facebook’s initial public offering (IPO) in May 2012.
The units of the companies including UBS, Citigroup, Knight Capital and Citadel, said they had a collective loss of about $500m in the IPO.
The SEC said the accommodation proposal is not designed to, and would not, compensate all claims of loss suffered by market participants relating to Nasdaq’s system difficulties with the Cross technology that matches orders.
However, the watchdog noted that the accommodation proposal would create a means of providing significantly more compensation for eligible claims, outside of litigation, than would otherwise be available under existing Nasdaq rules.
The SEC said Nasdaq and its affiliates are not liable for any losses, damages, or other claims.
Nasdaq said: "We are pleased that the Securities and Exchange Commission has approved our accommodation plan, which will enable our customers, members and market participants to receive appropriate restitution as Finra promptly begins processing claims."
Content from our partners
