Feeds

Citi to file claim with Nasdaq over Facebook IPOcalypse

Joins UBS in tussle for cash from teeny compensation pot

Internet Security Threat Report 2014

Citigroup is planning to file a claim for its piece of the $62m compensation pot Nasdaq is required to dole out after the Facebook IPOcalypse.

The bank is all set to apply for the existing compensation, but it's still leaving its other options open, according to the sources whispering to the Wall Street Journal and Reuters.

Citi lost around $20m in the Facebook debacle, when technical glitches at the market meant that trades weren't registered or went through at a different time, and therefore a different price, than when they were ordered.

While the sum is not to be sniffed at, it pales in comparison to UBS's losses, which the bank puts at over $350m. It said last month that it had already filed with Nasdaq to get all of that money back because of the exchange's "gross mishandling" of the first day of Facebook share trading.

Brokers and banks have been critical of Nasdaq's small compensation pot, arguing that the market should be liable for all of the IPO losses, amounting to hundreds of millions of dollars.

As a stock exchange, Nasdaq has some regulatory immunity from claims, such as a standing cap on any liability for technical glitches of $3m a month. But Citi said in a letter to the Securities and Exchange Commission last year that the market was operating as a for-profit company during the IPO and so should be liable for all of the losses. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.