Nasdaq defends Facebook compensation plan in letter to SEC
September 20, 2012 5:21 AM EST
Nasdaq OMX Group Inc stood by its proposed $62 million plan to compensate firms affected by the fallout from Facebook's botched IPO, taking aim at UBS AG, Citigroup Inc and other parties which derided the payback plan.
In a letter to the U.S. Securities and Exchange Commission dated September 17, Nasdaq said the proposed compensation pool "goes well beyond what is required under current Nasdaq rules." It noted that if the proposal is not approved, the applicable limit of liability under the approved rule would instead be $500,000 - less than 1 percent of the proposed pool.
Nasdaq's plan to offer $62 million in cash was an increase from an earlier $40 million payback fund, which was made up mostly of trading rebates.
Nasdaq defended its use of a 45-minute window to determine a benchmark reference price to assess the amount owed on orders qualifying for accommodation.
The company said the time frame "should have been ample time for a reasonably diligent member to identify any unexpected losses or unanticipated positions and take steps to mitigate or liquidate them."
The eight-page letter was signed by Nasdaq Senior Vice President and Corporate Secretary Joan Conley.
(Reporting By Ashley Lau in New York; Editing by Richard Chang)
Most Popular Slideshows
- 2014 US Open Update (Day 4 - Men's Singles): Murray, Djokovic, Raonic and Isner Advance to 3rd Round [PHOTOS]
- Prince Harry & Camilla Thurlow Getting Serious, St. Tropez Holiday Before The Prince’s 30th Birthday [PHOTOS]
- Top 5 Richest Tennis Athletes
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Sept 19 iPhone 6 Release Date Confirmed as Apple Sets Sept 9 iWatch, 2 iPhones Intro - Report
- Why Moto X is Not the Best Smartphone to Purchase Now?
- Nexus 6 Release Date Will Intro Android 5.0 aka Lemon Meringue Pie with Killer Specs & Features
- Hundreds of Men Rape Teen for Three Years
- Samsung Galaxy S5 Mini vs. LG G3 S (aka LG G3 Beat, LG G3 Mini) – Specs, Features And Price Showdown
- iPhone 6 Release Date Update: 4.7-Inch Model Scores 65.8% In Screen-To-Size Ratio; A Surprise Entry Scales Top Spot [List Attached]
- Product Recall Alert: Hewlett-Packard Pulls Out 6M Power Cords from US, Canada Over Fire Hazard Concerns, Australia Also Affected