facebook stock IPO

 

Yesterday we reported, that FOX Business Network (FBN) had received word that NASDAQ would settle today with investors. Sources told FBN “they are going to pay more than the $13 million” and “maybe as high as $30 million.” Today NASDAQ announced that they would pay investors $40 million for losses tied to the IPO. The New York Stock Exchange blasted Nasdaq over the IPO and the settlement.

The New York Stock Exchange blasted Nasdaq over the IPO and the  settlement. We have some exclusive details below.

FOX Business Network (FBN) Senior Correspondent Charlie Gasparino obtained a statement from the NYSE Euronext (NYSE:NYX) on the purposed Nasdaq settlement with investors in the Facebook Inc (NASDAQ:FB) IPO. The statement says the plan is “wholly inconsistent with fair practice” and would “potentially strongly incent customers to divert order flow to NASDAQ in order to receive compensation to which they are entitled, and allow NASDAQ to reap a benefit from market share gains they would not have otherwise received.”

 Excerpts from the report are below:

Statement from the NYSE reacting to the purposed Nasdaq settlement with investors in the Facebook IPO:

“We have yet to receive full details of NASDAQ’s plan. However, we believe it would be wholly inconsistent with fair practice and an undue burden on competition to allow NASDAQ to use pricing and other machinations as a guise for fairly compensating those impacted by the Facebook IPO issues.  Such a tactic would potentially strongly incent customers to divert order flow to NASDAQ in order to receive compensation to which they are entitled, and allow NASDAQ to reap a benefit from market share gains they would not have otherwise received.  This is tantamount to forcing the industry to subsidize NASDAQ’s missteps and would establish a harmful precedent that could have far reaching implications for the markets, investors and the public interest.  We intend to strongly press our views that Nasdaq’s proposal cannot be allowed to permit an unjust and anti-competitive situation.”