Nasdaq OMX Group on Wednesday announced that its Board of Directors has approved a compensation program of approximately $40 million for the brokers which had suffered losses during the technical failure of the stock exchange in the first trading day of Facebook (FB). The failure resulted in that orders could not be correctly handled.
The Nasdaq Stock Exchange said in a statement on Wednesday, according to the program approved by the board of directors, about $13.7 million will be paid in cash, and the rest will be compensated in the form of reducing the future transaction fees of the brokers which had suffered losses. The statement also pointed out that this program also needs to be approved by the U.S. SEC (Securities and Exchange Commission).
The social networking operator Facebook carried out its IPO (initial public offering) on May 18, its IPO stock exchange NASDAQ incurred technical failure as huge orders in that day. Facebook’s public trading session was delayed at least 30 minutes, and it could not make sure whether orders had been correctly exercised after a long period of time.