Feb 5 Nasdaq OMX Group Inc is in
preliminary talks with U.S. securities regulators over a
possible settlement for the glitch-ridden stock market debut of
social networking site Facebook Inc, the Wall Street
Journal reported on Tuesday, citing people with knowledge of the
A settlement with the Securities and Exchange Commission
would likely include a $5 million penalty for Nasdaq, the
Major market makers and broker dealers say they lost upward
of $500 million because of technical glitches during Facebook's
May 18 stock market debut.
"We are working closely with the Securities and Exchange
Commission to resolve issues that arose from the events of May
18," Nasdaq spokesman Joe Christinat told Reuters.
Nasdaq offered a compensation plan in September of $62
million for firms harmed in the debut, but the proposition
received mixed reviews with UBS AG , Citigroup
Inc and other parties speaking out against it.
The SEC could not immediately be reached for comment by
Reuters outside of regular business hours.