Feeds

Citi to file claim with Nasdaq over Facebook IPOcalypse

Joins UBS in tussle for cash from teeny compensation pot

Intelligent flash storage arrays

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

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.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
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.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.