A unit of Citigroup posted losses of about $ 20 million for operations in the failed Facebook IPO on the Nasdaq, said Friday by a source within the company who has knowledge of the situation.
Losses of Automated Trading Desk unit joined those reported by Knight Capital Group Inc. and Citadel Securities, which held that the loss was between 30 million and 35 million dollars each. UBS AG, the other major broker involved in the IPO of leading social networks such as Facebook, has also reported similar losses in their finances.
Nasdaq firms asked to detail the estimates of losses on Monday night. After that, the Regulatory Authority Financial Industry will evaluate the submissions and issue a report on the subject in about four weeks, two of the company’s sources said.
A technical glitch delayed the debut of Facebook in the market for about 30 minutes and a lot of orders were delayed, causing some investors and operators to experience significant losses as the stock fell to an amount that was way below what everyone expected.
The exchange operator involved in the incident faces investor lawsuits and threats of legal action by the brokers who lost millions of dollars in this undertaking.
