Nasdaq Officials Are Sorry About The Whole...Y'Know

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They've reviewed the tapes and it appears an apology is in order.

Robert Greifeld said he and other Nasdaq Stock Market officials "owe the industry an apology" for the exchange's technical problems that marred Facebook highly anticipated stock offering last month and left traders and investors frustrated and confused. In his first one-on-one interview about the social-networking company's initial public offering, Mr. Greifeld, chief executive of Nasdaq OMX Group Inc., said Wednesday that he and his staff have undergone "an entirely clinical, analytical" review of the events of May 18 in order to calculate trading losses caused by the IPO. "Clearly we didn't succeed here," Mr. Greifeld said in his office at Nasdaq's MarketSite in New York's Times Square.

Greifeld: Nasdaq Owes 'An Apology' [WSJ]

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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 take your best shot. Nasdaq Claims Strong Defense [WSJ] Related: UBS Not Sweating The Small Stuff