Jessica Toonkel and John McCrank
Reuters
May 25, 2012
Claims by four of Wall Street’s main market makers against Nasdaq over Facebook’s botched IPO are likely to exceed $100 million, as they and other traders continue to deal with thousands of problems with customer orders.
A technical glitch delayed the social networking company’s market debut by 30 minutes on Friday and many client orders were delayed, giving some investors and traders significant losses as the stock price dropped. The exchange operator is facing lawsuits from investors and threats of legal action from brokers.
Four of the top market makers in the Facebook IPO — Knight Capital, Citadel Securities, UBS AG and Citi’s Automated Trading Desk — collectively have probably lost more than $100 million from problems arising from the deal, said a senior executive at one of the firms.
Knight and Citadel are each claiming losses of $30 million to $35 million, potentially overwhelming a $13 million fund the exchange set up to deal with potential claims.
Nasdaq also has to contend with the outside prospect that it could lose the Facebook listing entirely after having just obtained it.
One Response to “Facebook market makers’ losses total at least $100 million”
Leave a Reply
You must be logged in to post a comment.
gee another huge antichrist scam done to rip off america and distroy them to the smallest level of existance ….gee people the entire dcgov and the federal reserve the stocks markets all utilities big corporation of all kinds are all own by the same people …..and they all worship the mangod temple they made for themselfs isreal ….the antichrist matrix is nothing to god and they are doomed just to greedy to see that in there selfish lonely heads of deception that bares no fruit peace joy of anykind what a joke this country is with its leaders kissing the moneychangers asses daily and virturaly slow killing the american people in life wealth rights to freedom ….they can kiis my ass i would never do anything these scumfucks come up with ever …