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Nasdaq Officials Would Just Like To Point Out That Anyone Who Lost Money As A Result Of The Exchange’s Incompetence Have Little To No Legal Recourse

Oh you can try a lawsuit but, historically speaking, it won’t do shit.

Nasdaq is sending a message to firms weighing lawsuits related to trading losses in Facebook’s initial public offering: winning won’t be easy. The exchange operator believes it is protected by its contracts with members and by its unusual legal status, which is rooted in its dual role as a regulatory body as well as a business that makes money running markets. Exchange officials in recent weeks have pointed out to analysts that Nasdaq has never been successfully sued over a trading error. “When you look at member agreements that people sign, it’s quite explicit that they’re bound by that accommodation policy,” Robert Greifeld, Nasdaq’s chief executive, said last week at a Sandler O’Neill + Partners conference, referring to legal agreements capping the exchange’s payouts linked to system problems…Banks and brokers have estimated they lost hundreds of millions of dollars due to technical problems during Facebook’s May 18 debut.

The glitches forced Nasdaq to delay Facebook’s opening, and left trades involving millions of shares unconfirmed for hours. Amid the chaos, traders were forced to guess their positions and place additional orders based on those estimates. When Nasdaq delivered the results of the trading Friday afternoon, many firms were caught off guard and scrambled to reposition.

According to Greifeld, the last guy who tried to get his money back “trades on the pink sheets now” but, again, take your best shot.

Nasdaq Claims Strong Defense [WSJ]
Related: UBS Not Sweating The Small Stuff

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57 Responses to “Nasdaq Officials Would Just Like To Point Out That Anyone Who Lost Money As A Result Of The Exchange’s Incompetence Have Little To No Legal Recourse”

  1. Guest says:

    Guess its time to start slashing some tires.

    -Vigilante guy

  2. JohnnyCanes says:

    I estimate my client's losses to $315 million. Please remit check asap.
    – Dewey and Leboeuf

  3. structured prods says:

    send em to the tsx

  4. guest says:

    Robert looks appropriately smug in the story photo.

  5. Guest says:

    Greifeld, just a heads up pal, the "never has happened, never will happen" approach…not as rock-solid as you would think.

    – AIG FP

  6. Deleveraging says:

    Anyone who traded that piece of shit deserved to lose money.

  7. guest says:

    tell it to my lawyers at Dewey & LeBoeuf

  8. investorcluzo says:

    when I said "nothing is f*cked," I was just talking about us…
    -R. Greifeld

  9. Jack says:

    grammar… anyone "has" not "have"

  10. Niko says:

    More like BAWSAQ, amirite?

  11. guest 1 says:

    Hey, if you don't like us, there's always BATS.

  12. Anonymous says:

    Too bad you can’t throw your risk team under the bus here.

    — Jamie D.

  13. Darwin says:

    Buying facebook and losing is the the thinning of the economic herd

  14. The Sword says:

    You're Telling Me!!!!

    — Jimmy Dimon

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