Nasdaq‘s (NDAQ) glitchy� Facebook (FB) IPO may have cost the market-making arm of Citigroup (C) as much as $20 million, according to sources familiar with the situation.
As the Wall Street Journal is reporting, the Citigroup exposure lifts the financial hit from Facebook among brokers toward $100 million, as Citadel LLC, Knight Capital Group (KCG) and other other wholesale market-making firms reportedlarger losses earlier in the week.
The firms have asked Nasdaq to compensate them for their losses. So far the company has set aside approximately $13 million to offset the damage, thought executives have suggested that amount could climb. The board of Nasdaq OMX will make the final decision as to how much the exchange company is willing to pay to make up losses sustained by some of the largest U.S. equity traders.
This news comes on the heels that Morgan Stanley (MS) may reimbursesome clients who overpaid for the IPO.
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