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Thu June 7, 2012
Nasdaq To Pay For Botched Facebook Trades
RENEE MONTAGNE, HOST:
NPR's business news starts with NASDAQ compensating clients.
(SOUNDBITE OF MUSIC)
MONTAGNE: The NASDAQ stock exchange will pay $40 million in compensation for botched trades that occurred during Facebook's initial public offering. NASDAQ clients lost millions of dollars on Facebook's May IPO because of computer glitches. The opening trade was delayed by more than half an hour, and many investors were unsure if their trades had gone through.
NASDAQ's $40 million does not come close to the more than $100 million that analysts estimate were actually lost to the technical problems. The payment includes $13 million in cash to investment firms. The rest of the compensation will take the form of trading discounts. Transcript provided by NPR, Copyright National Public Radio.