Securities and Exchange Commission approves Facebook IPO compensation plan

The Securities and Exchange Commission (SEC) has today revealed its approval of Nasdaq's compensation plan for losses from Facebook’s IPO debut last year.

This could see customers being paid as much as $62 million for losses, with the SEC saying it found Nasdaq's compensation plan ‘consistent with securities law governing exchange operations’.

On the day of the IPO launch in May 2012, Nasdaq's systems got caught in a loop while lining up orders before the company's shares started trading, with the system unable to confirm trades for several hours after this.

According to the Wall Street Journal, the Financial Industry Regulatory Authority will process and evaluate all claims submitted to Nasdaq, with the final amount Nasdaq would pay to be detailed in a consequent filing with the SEC.

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