Go to the Globe and Mail homepage

Jump to main navigationJump to main content

3219BO-USA-FACEBOOK_LAWSUITS_O_ NONE* (No-Data-Available, MAY 23/Reuters)
3219BO-USA-FACEBOOK_LAWSUITS_O_ NONE* (No-Data-Available, MAY 23/Reuters)

Citigroup unit lost $20-million in Facebook flop: source Add to ...

Citigroup Inc.’s Automated Trading Desk had trading losses of about $20 million from Facebook Inc.’s botched initial public offering on Nasdaq OMX Group Inc.’s U.S. exchange, a source with knowledge of the situation said on Friday.

The unit’s losses were in addition to claims by market makers Knight Capital Group Inc. and Citadel Securities, which each had losses of $30-million to $35-million.

More related to this story

UBS AG , the other large market maker involved in the IPO of the social networking company on May 18, has not disclosed any losses.

Nasdaq asked firms to detail estimates of losses by Monday night. After that, the Financial Industry Regulatory Authority will evaluate the filings and put out a report on the matter in about four weeks, two sources said.

A technical glitch delayed Facebook’s market debut by 30 minutes and many client orders were delayed, giving some investors and traders significant losses as the stock price dropped.

The exchange operator is facing lawsuits from investors and threats of legal action from brokers.

 
  • C-N
  • FB-Q
  • NDAQ-Q
  • KCG-N
  • UBS-N
Live Discussion of C on StockTwits
More Discussion on C-N
Live Discussion of FB on StockTwits
More Discussion on FB-Q
Live Discussion of NDAQ on StockTwits
More Discussion on NDAQ-Q
Live Discussion of KCG on StockTwits
More Discussion on KCG-N
Live Discussion of UBS on StockTwits
More Discussion on UBS-N

More related to this story

Topics:

In the know

Most popular video »

Highlights

More from The Globe and Mail

Most Popular Stories