Knight says accepts Nasdaq’s $62 million Facebook payback plan

August 30, 2012
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(Reuters) – Knight Capital Group Inc said it accepts Nasdaq OMX Group Inc‘s $62 million payback plan for firms that suffered losses on Facebook Inc‘s market debut due to Nasdaq technical glitches, but rejects the idea of having to waive the right to sue the exchange.

The market-making firm would have rather been fully reimbursed for its losses, but supports Nasdaq’s move to increase the payback fund to $62 million in cash from an earlier $40 million, mostly in trading rebates, Knight said in a letter to the U.S. Securities and Exchange Commission, dated August 29.

Knight and several other market-making firms and brokerages have said they lost a total of upwards of $500 million in the IPO. Knight alone said it lost over $35 million.

(Reporting By John McCrank; Editing by Gerald E. McCormick)

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