NASDAQ CEO Robert Greifeld has apologized for technical glitches that interfered with Facebook's IPO last month. His apology followed a wave of backlash against NASDAQ's proposal to compensate brokers for $40 million in trading losses because of technical errors during the first hours of the IPO.
“Clearly we didn't succeed here,” Greifeld told The Wall Street Journal. “Obviously we still have to be better. We have to go back, and everything we do has to go through some rigorous self-evaluation.”
Greifeld and his staff have conducted an extensive review of the May 18 IPO to determine the extent of the trading losses, he added.
On Wednesday, NASDAQ unveiled its compensation plan, which would pay $13.7 million in cash to firms and credit $26 million through reduced trading costs. The proposal was criticized by trading firms, brokers, and the exchange group's rival, NYSE Euronext. Knight Capital Group called the plan “simply unacceptable,” and the NYSE said it was “wholly inconsistent with fair practice.”
Financial firms have estimated that they and their customers lost more than $100 million from the Facebook IPO.