Nasdaq pays $62m in Facebook flub

NEW YORK — The Securities and Exchange Commission cleared Nasdaq OMX Group’s plan to change its rules so it can pay $62 million to compensate brokers for its mishandling of Facebook’s public debut. The funds go to traders who lost money after a design flaw in the exchange’s computers delayed Facebook’s initial public offering and left them confused about how many shares they owned.

Nasdaq’s proposal was opposed by Citigroup and UBS, which said their losses exceeded $62 million. Nasdaq, balancing its role as an organization with legal immunity for technology breakdowns with its obligations to members, said the pool covers brokers’ ‘‘objective, discernible’’ losses.

The SEC said the plan provides ‘‘significantly more compensation for eligible claims, outside of litigation, than would otherwise be available.’’


Existing rules capped Nasdaq’s liability for losses related to computer malfunctions at $3 million.