Reuters notes that Fidelity, the mutual fund and retail brokerage powerhouse, is working with "thousands" of customers to resolve issues related to the botched Facebook IPO.
Nearly a week after the deal was priced, "many investors have found that their orders for Facebook were not executed at the prices they thought, said advisers…"
The Boston-based company was not shy about placing the onus on the Nasdaq.
"On behalf of our customers, Fidelity's senior management has been working with the regulators, market makers and NASDAQ to represent all of our customer's trading issues from May 18, and we will continue to do so until we are confident that NASDAQ has done everything it can to mitigate the impact to our customers," a spokesman was quoted.
The firm will no doubt be seeking to ensure that the exchange makes their customers whole. Such activity is going across the industry. Market maker Knight Capital has already pegged its losses at $35 million. Other brokerages, discount and full service, are no doubt going through exactly what Fidelity is going through.
The big question here is how much is all this going to cost Nasdaq OMX. We'll just have to see. There's really know way of knowing. You can bet regulators are taking a keen interest in this.
- here's the article