On Monday, the U.S. Securities and Exchange Commission posted a notice online about Nasdaq’s Facebook plan, observing “The Commission believes that questions are raised as to whether Nasdaq’s accommodation proposal… would promote just and equitable principles of trade, protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.” The SEC said it was extending the timeframe for reviewing the plan of Nasdaq and beginning proceedings to review legal and policy issues more closely.
The technology glitch during Facebook’s IPO that delayed things for 30 minutes on Nasdaq prevented many orders from being included in the opening cross. Companies like Knight Capital Group Inc, UBS AG, Citigroup Inc, and others claim a collective loss near $500 million.
Originally, Nasdaq offered a peace offering composed of a $40 million compensation plan for brokers who lost money, but later revised the amount to $62 million. However, those who suffered loss, claim the amount is too low. According to market-makers, the delay in confirmations during the Facebook IPO led to delays for many clients and in some cases orders were entirely lost.
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The Dodd-Frank law empowering the SEC to review rule changes filed by exchanges has a limitation window of 45 days, which would have ended on October 30, but by posting its notice for instituting investigation of Nasdaq’s plan on Tuesday, the SEC remains in the game.
The SEC said that it has received many complaints about the manner by which Nasdaq’s plan created and limited categories eligible for the settlement and compensation. The SEC would be reviewing Nasdaq’s method for determining eligibility for compensation and the requirement for member firms to waive all claims against Nasdaq pursuant to agreeing for settlement.
Posted by EmploymentCrossing
on October 31, 2012. Filed under Business News,Facebook.
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Law firms of all sizes are being much more selective about who makes equity partner. Gone are the days where doing good work and putting in your time is enough to get you to a profit sharing level. Today, equity partners almost always have to prove that they can contribute their share to the firm. So what does this mean for associates and how can a two-tiered partnership track be beneficial? With a two-tiered partnership structure, associates get more time to prove themselves and also more time to determine whether partnership is the right goal for them. Two-tier partnerships (non-equity and equity) exist so the firm can train and develop associates into equity partners. The non-equity track to partner at most firms is on average, 6 years long. [...]
May 16, 2013 Read More
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