Nasdaq is taking the first steps towards compensating traders who made losses on Facebook’s IPO day when technical flaws at the exchange delayed the display of trades for the first few hours out of the gate. The exchange is considering compensating traders by offering them discounted trading rates, the Wall Street Journal has heard, part of a $13.7 million packet the exchange has set aside for traders bruised by the snags on May 18. As a result of glitches of various kinds at the Nasdaq end, customer orders were processed at surprise prices, and information was poorly distributed in general, trading firms have complained. Altogether they ran up an estimated $100 million in collective losses for trading firms. Nasdaq could be facing lawsuits because of the events on May 18, but before those hit hopes to make good.
To keep up with news as it happens, check in on our main Fast Feed page.