The U.S. Securities and Exchange Commission (SEC) has approved a plan submitted by The Nasdaq OMX Group Inc. (NASDAQ: NDAQ) that provides up to $62 million in compensation for investors who lost money during the debacle that was the Facebook Inc. (NASDAQ: FB) initial public offering (IPO). Nasdaq itself sought the SEC’s permission to reimburse investors by adding a subsection to its rule limiting claims payments to $500,000 in any given month.
The rule change specifically addresses the Facebook IPO. Claims will be paid on four categories of realized or unrealized direct trading losses. Claimants have seven days from SEC’s approval to file written claims for compensation. The Financial Industry Regulatory Authority (FINRA) will evaluate and process the claims.
According to the SEC, payments will be made in two tranches:
First, if the [Nasdaq] member has provided customer compensation, the member would receive an amount equal…
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