Nasdaq OMX Group (NASDAQ:NDAQ) chief executive Robert Greifeld says he’s confident the exchange operator’s new plan to compensate investors hurt by technical troubles during the Facebook (NASDAQ:FB) IPO will receive acceptance. The $62 million all-cash repayment plan adds $22 million to the earlier proposal that was widely criticized for being too small and for using trading credits as a way of payment.
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“I would definitely highlight the absence of negative comments with respect to the plan from the members who are directly impacted by it,” Greifeld said on Wednesday during a post-earnings conference call. He said the lack of criticism this time around “is seen as a relative positive and I think we in the industry are getting ready to move forward from this issue.”
Greifeld said the compensation plan, if approved, would likely take effect in the fourth quarter.
However, neither the company’s earnings release nor Greifeld offered any more details about what went wrong on May 18, with the latter referring to the 73-page filing Nasdaq made with regulators on Friday. “That’s our definitive word on the topic,” he said. More details are expected to emerge in a report by IBM (NYSE:IBM), which was hired by the exchange to review the problems, next week.
The new repayment plan has not yet been posted on the public register by the U.S. Securities and Exchange Commission. Once it is, firms will have 21-days to submit formal comments, according to Reuters.
Firms including Knight Capital (NYSE:KCG), UBS (NYSE:UBS), Citigroup’s (NYSE:C) Automated Trading Desk, and Citadel Securities are estimated to have lost more than $200 million. One of the conditions of the new plan is that in order to receive compensation, firms must waive their right to take legal action against the exchange over the IPO.