Nasdaq is hopeful that its most recent compensation plan will satisfy the trading firms that incurred losses during Facebook’s botched debut May.
During the company’s earnings conference call with analysts Wednesday, Nasdaq CEO Robert Greifeld said its plan is “definitive” and said there haven’t been any negative comments about it since Nasdaq boosted the size of the compensation fund to $62 million last week.
“I would definitely highlight the absence of negative comments with respect to the plan from the members who are directly impacted by it,” Greifeld said.
While Greifeld was careful not to say that any the four major trading firms — Knight Capital (KGC), Citadel, Citigroup (C, Fortune 500) and UBS (UBS) — have given their nod of approval, he did say that Nasdaq has been in discussion with its customers and that the “accommodation plan hopefully reflects some of those conversations.”
Nasdaq (NDAQ) said it has also had discussion with rating agencies, briefed them about the plan, and doesn’t expect any material impact on its credit ratings.
And Greifeld noted that Nasdaq has not and doesn’t plan to set aside any reserves for legal expenses.
“We have substantial legal and factual defenses to any litigation that has been or could be brought in connection with this IPO,” he said.
Greifeld said the compensation plan, if approved by the Securities and Exchange Commission, would likely take effect in the fourth quarter.
Nasdaq hired IBM (IBM) to review its operating systems following the glitch during Facebook’s debut, and said the results will be out next week