SEC delays decision on Nasdaq's Facebook IPO compensation plan
* SEC to decide by March 29, instead of Jan. 28
* Time needed to mull plan, arguments for and against
NEW YORK Jan 24 (Reuters) - U.S. securities regulators will delay, by another two months, a ruling on Nasdaq OMX Group's $62-million plan to compensate firms that suffered losses during Facebook's botched initial public offering in May.
The U.S. Securities and Exchange Commission needs more time to consider Nasdaq's proposal, as well as the comments received from various parties in favor of or against the plan, according to a regulatory filing dated Jan. 23.
The SEC, which had been expected to decide on the matter by Jan. 28, said its decision would be made by March 29.
At stake is the extent to which U.S. exchanges, which match hundreds of billions of dollars of securities transactions daily, can be liable for glitches.
Market-makers like Knight Capital Group Inc, UBS AG , Citigroup Inc, and others, have said they collectively lost around $500 million on May 18, when shares of Facebook first traded on public markets.
A Nasdaq technology issue delayed the IPO for 30 minutes and, in the interim, many orders were not included in the opening auction, leaving some traders unaware of their positions.
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