Nasdaq OMX Group Inc stands by its $62 million compensation plan for firms harmed in Facebook Inc's glitch-ridden market debut and is prepared to defend against any potential litigation related to it, Lee Shavel, the company's chief financial officer, said on Monday. By John McCrank.
The exchange operator has received mixed reviews of the plan, filed with regulators in late July, with retail market making firms Citadel Securities and Knight Capital Group voicing their support, while UBS AG and Citigroup strongly criticized the plan for not going far enough, and asked regulators reject it.
“Clearly there are differences of opinion, and some are more negative on the proposal,” Shavel said at the Barclays Global Financial Services Conference in New York.
“We continue to believe … that this addresses the issues that we identified in a very fair, reasonable, and objective manner.”
Shavel said Nasdaq has robust legal and factual defenses with regard to any litigation associated with the May 18 initial public offering.
Nasdaq expects a ruling on the plan by the U.S. Securities and Exchange Commission in the fourth quarter.
“We are certain that they are giving it all of their attention at this point,” Shavel said. DM
Photo by Reuters.
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