This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Nasdaq Offers $40 Million for Facebook Fiasco

NEW YORK ( TheStreet) - -The Nasdaq OMX Group (NDAQ - Get Report) has announced a $40 million compensation plan for financial organizations that lost out in the botched Facebook (FB - Get Report) IPO last month.

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 - Get Report) 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

>To submit a news tip, send an email to:

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $117.58 0.00%
IBM $145.94 0.00%
NDAQ $61.71 0.00%
AAPL $93.74 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs