Facebook claims could top $100m
Claims by four of Wall Street’s main market makers against Nasdaq over Facebook’s botched IPO are likely to exceed $100m, as they and other traders continue to deal with thousands of problems with customer orders. The exchange operator is facing lawsuits from investors and threats of legal action from brokers.
Four of the top market makers in the Facebook IPO – Knight Capital, Citadel Securities, UBS AG and Citi’s automated trading desk – collectively have probably lost more than $100m from problems arising from the deal, said a senior executive at one of the firms. Knight and Citadel are each claiming losses of $30m to $35m, potentially overwhelming a $13m fund the exchange set up to deal with potential claims. Facebook shares ended trading yesterday up 3.2 per cent at $33.03, about $5 short of their offering price.