Back in May last year, when Facebook turned into a public company, there were delays due to the glitches and intense demand, result of which investors had to lose their money. Today NASDAQ OMX Group, the parent company of American stock exchange granted approval by the US Securities Exchange Commission to distribute up to $62 million in cash to investors who being suffered from the glitch. The glitch resulted in halting the trading of the company’s shares by half an hour making investors to not able to confirm orders, which further entitled for them to losses.
Here is what NASDAQ said today:
Nasdaq proposes to compensate market participants for certain claims related to system difficulties in the Nasdaq Halt and Imbalance Cross process (“Cross”) in connection with the Facebook IPO in an amount not to exceed $62 million.
Further, as proposed by Nasdaq, claims for compensation must arise solely from realized or unrealized direct trading losses from four specific categories of Cross orders:
(i) sell Cross orders that were submitted between 11:11 a.m. ET and 11:30 a.m. ET on May 18, 2012, that were priced at $42.00 or less, and that did not execute;
(ii) sell Cross orders that were submitted between 11:11 a.m. ET and 11:30 a.m. ET on May 18, 2012, that were priced at $42.00 or less, and that executed at a price below $42.00;
(iii) buy Cross orders priced at exactly $42.00 and that were executed in the Cross, but not immediately confirmed; and
(iv) buy Cross orders priced above $42.00 and that were executed in the Cross, but not immediately confirmed, but only to the extent entered with respect to a customer that was permitted by the member to cancel its order prior to 1:50 p.m. and for which a request to cancel the order was submitted to Nasdaq by the member, also prior to 1:50 p.m.
Latest posts by Karan Chopra (see all)
- Facebook: Always Helping… Facebook (Comic) - March 5, 2014
- I’d Like To Deposit This Check Into My Bank Account (Comic) - March 4, 2014
- Data Loss And Disaster Recovery (Infographic) - March 4, 2014