Full article here: Citigroup Slams Nasdaq's Facebook Compensation Plan
Citigroup slammed Nasdaq OMX Group's plan to compensate firms harmed byFacebook's botched market debut to the tune of $62 million, saying in a regulatory filing the exchange should be liable for hundreds of millions more, according to a letter seen by Reuters.
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Citi [C 30.31 
-0.18 (-0.59%) 
] said Nasdaq's[NDAQ.O 23.02 -0.17 (-0.73%) ] actions in the May 18 initial public offering amounted to "gross negligence," in the letter to the U.S. Securities and Exchange Commission, which had not yet been made public.
-0.18 (-0.59%) ] said Nasdaq's[NDAQ.O 23.02 -0.17 (-0.73%) ] actions in the May 18 initial public offering amounted to "gross negligence," in the letter to the U.S. Securities and Exchange Commission, which had not yet been made public.
Citi's market-making arm, Automated Trading Desk, lost around $20 million in the May 18 IPO, a source told Reuters in May. That is just a sliver of the upwards of $500 million that market-making firms - which facilitate trades, backing them with their own capital - and brokers lost in the $16 billion IPO.
Liabilities at U.S. exchanges, which have some regulatory duties, are capped in most instances. Nasdaq's cap in most instances is $3 million a month.
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