NYSE Opposition to Nasdaq Could Delay Facebook Compensation Plan
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A battle between NYSE Euronext and Nasdaq OMX Group Inc. over a proposed remedy to Facebook Inc.’s botched initial public offering places the U.S. Securities and Exchange Commission in the middle of a dispute that could delay compensation for brokers.
Nasdaq OMX, the second biggest U.S. exchange operator, is seeking SEC approval of a plan to set aside $40 million for brokers whose orders were mishandled during the glitch, which delayed trades for about 30 minutes during Facebook’s May 18 trading debut. NYSE Euronext, the biggest U.S. exchange owner, says the plan is unfair because a portion of the proposed compensation package is a discount on future trading fees, which may boost Nasdaq’s market share at the expense of competitors.