Citigroup has filed a compensation claim with Nasdaq OMX Group for losses resulting from glitches with the Facebook public offering, according to reports.
As SmartCompany reported in May last year, a Nasdaq glitch prevented some investors from buying shares on the day of the float, with Facebook’s shares rising by less than 0.5% during its first day of trading.
Citing sources with knowledge of the situation, Reuters reports the financial giant’s market-making arm – which backs trades with its own capital – lost $US20 million as a result of the IPO.
In the US, regulatory immunity limits exchanges’ liabilities from technical glitches, with the Nasdaq’s liabilities capped at $US3 million in most cases.
However, Citigroup claims the losses resulted from actions taken on behalf of a for-profit company, and therefore the exchange is not eligible for regulatory immunity in this case.