NasdaqOMX Group's plan to pay a total of $62 million to firms that lost money due to Facebook Inc's botched market debut may fall short of appeasing Wall Street market makers, which would have to sign off on their right to take legal action against the exchange in order to collect. "I have a hard time believing that they will just settle for that," said consultant Chris Nagy, who thinks "that it's not going to be enough at this point in time." Market makers, which facilitate trades for brokers and ensure liquidity, lost upward of $200 million in the $16 billion IPO on May 18, as technical glitches on Nasdaq's systems delayed the offering, and then left many investors in the dark for more than two hours as to whether their orders had gone through. The all-cash reimbursement plan, which Nasdaq filed with regulators late Friday, is $22 million more than originally proposed in June. Nasdaq is due to report itsearningson Wednesday and executives will likely be asked to explain why the company decided to boost the amount, and how it intends to pay for it.... Continue to read.
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