The botched Facebook delay at the Nasdaq stock exchange on Friday may cost the venue $100 million.
The social network's initial public offering got off to a sloppy start after Nasdaq systems failed to properly execute buy and sell orders, which has prompted traders and investors demanding the exchange to pay them back for losses they wouldn't have otherwise sustained, sources close to the matter tell Fox Business Network.
Sources estimate that demands for retribution could soar past $100 million, with some even putting the payback at $200 million.
Nasdaq CEO Bob Greifeld has said the exchange won't cover losses, but traders say they're sticking to their guns.
"Let’s hope Mr. Greifeld does the right thing, the gentlemanly thing and makes us whole," a trader tells Fox Business Network.
"This is worse than Bats because they at least pulled the deal; my clients were in limbo all day," the trader adds, referring to Bats Global Markets, a six-year-old equity exchange that disrupted trading and sent Apple stocks plunging due to system errors the day it went public last March.
Bats withdrew its initial public offering on news it was disrupting trading.
One trader tells Fox Business Network that a client lost $1 million due to the technical glitch.
Other market watchers complained how technical snags can seriously disrupt trading and cost investors money.
"It’s amazing that both Bats and Nasdaq unfortunately failed in an inglorious way," William Karsh, the former chief operating officer at Direct Edge Holdings LLC, an exchange operator that competes with Nasdaq, tells Bloomberg.
"It proves that technology isn’t infallible. There are so many moving parts that things can go wrong. That’s the lesson we learn."
© 2023 Newsmax Finance. All rights reserved.