After a couple of tweets said investment bank UBS plans to sue the Nasdaq over Facebook trading losses, the investment bank said it is still examining how to recoup its losses from the Facebook IPO and has yet to file suit.
Two tweets from CNBC’s Twitter account this morning said UBS could have lost as much as $350 million on Facebook trading and was “preparing legal action against Nasdaq as a result of Facebook trading loss.”
Previous estimates have put collective loss at more than $100 million, but market maker Knight Capital Group said its own losses are close to $200 million. UBS declined to disclose its losses.
“Given the size of our U.S. Equities business and our role as a major market maker, UBS was affected by these issues, as we believe other market participants may have been,” UBS spokeswoman Karina Byrne said in a statement e-mailed to CNET today. “Consistent with our policy on market comments on our positions or intra-quarter performance, we are not disclosing the amount of the loss, which is not material to UBS. We are continuing to consider avenues to recover our losses in this matter, but have not yet taken legal action.”
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Nasdaq continues to come under fire for its mishandling of Facebook’s IPO on May 13. The day started after a 30-minute delay, and traders complained they were not able to confirm changes or cancellations made to Facebook orders. Later on in the morning, some traders said they had not received confirmation from Nasdaq that transactions had actually been completed.
The stock exchange has submitted plans for a $40 million payout for banks and traders, but critics have said it’s just not enough.
Related Links:
Nasdaq: We ‘owe the industry an apology’ for Facebook flubs
Nasdaq ready to compensate Facebook IPO investors
Facebook, Zuckerberg sued over IPO
Investment firms warned of Facebook woes before IPO, report says
It’s a Facebook backlash. Wow, that was quick!
via CNET Latest News http://news.cnet.com/8301-1023_3-57449761-93/despite-report-ubs-says-no-lawsuit-yet-over-facebook-mess/?part=rss&subj=latest-news2&tag=title
