It was announced this week that the boards of NASDAQ OMX Group and The NASDAQ Stock Market are seeking a review by the Securities and Exchange Commission of a one-time voluntary accommodations program for members who were disadvantaged by technical problems that happened during the Facebook (FB) IPO on May 18. The technical problems have been remedied according to an article from streetinsider.com.
The NASDAQ OMX Group Board has approved a voluntary accommodations fund of approximately $40 million. Under this new proposal approximately $13.7 million would be paid in cash to member firms. The balance would then e credited to the members to reduce the trading costs, with all benefits expected within six months for the vast majority of firms.The Financial Industry Regulatory Authority (FINRA) has agreed to evaluate claims submitted by firms under the voluntary accommodations program. NASDAQ OMX has issued an Equity Trader Alert advising members on how to request accommodations.

The members will qualify for accommodations if:

  1. They were directly disadvantaged because of technical problems on the part of NASDAQ prior to the start of  trading at 11:30 a.m.; and that
  2. They were uncertain regarding their IPO cross position.

This program will provide accommodations involving 3 kinds of orders that were placed during the IPO cross:

  • Sells priced at $42 or less that didn’t execute
  • Sells priced at $42 or less executed at an inferior price
  • Buys priced at $42 that executed in the cross but not immediately confirmed

This will not be made available for losses that resulted from affirmative decisions by members, or in cases where members told investors that unconfirmed trades had been executed.

If you or a family member sustained investment losses due to your stock broker or financial advisor’s recommendations in Facebook (FB) stock, call Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, for a no cost consultation on how to potentially recover your Facebook losses. To speak with an attorney please call 888-760-6552, or visit: https://www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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