The board of the Nasdaq OMX Group has approved a "voluntary accommodations fund" of approximately $40 million, according to a statement. Under the terms of the proposal, which is subject to review by the Securities and Exchange Commission, approximately $13.7 million would be paid in cash to member firms.
The balance would be credited to members to reduce trading costs, Nasdaq said. All benefits are expected to be delivered within six months for the vast majority of firms, it added.
The Financial Industry Regulatory Authority has agreed to evaluate claims submitted by firms, which follows weeks of speculation about the exchange's compensation plan.Even though the widely anticipated first-day pop failed to materialize, Facebook's IPO saw the Nasdaq struggle with unusually heavy volume. The exchange resorted to manually delivering executions to brokerage houses. Shortly after the IPO on May 18, Robert Greifeld, the CEO of Nasdaq OMX Group, acknowledged technology problems related to Facebook's listing, according to a published media report, saying the exchange was "humbly embarrassed" by the events on the company's debut. In its statement released on Wednesday, the Nasdaq OMX Group said that the technical problems experienced on May 18 have been remedied. Nasdaq has also picked tech giant IBM (IBM) to review its processes for designing, developing, testing, deploying and operating market systems. Facebook shares gained 1.16% to reach $26.17 on Wednesday. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: firstname.lastname@example.org. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV