March 25, 2013 / 3:56 PM / 5 years ago

UPDATE 1-UBS demands Nasdaq fully cover its losses from Facebook IPO

NEW YORK, March 25 (Reuters) - UBS AG said on Monday it has filed an arbitration demand against Nasdaq OMX Group over losses from Facebook Inc’s glitch-ridden market debut in May.

UBS said it is seeking to be fully compensated for its losses, which it previously said topped $350 million, from the initial public offering.

Nasdaq said on Monday the U.S. Securities and Exchange Commission approved its compensation plan for firms harmed in the IPO. The plan would compensate a total of $62 million, spread out over all firms that qualify for reimbursement.

“We have previously filed comment letters to the SEC in August and November 2012 condemning Nasdaq’s proposed compensation plan as inadequate and insufficient, and the SEC’s approval of the plan does not change our opinion,” UBS said in a statement.

“Moreover, UBS has already filed an arbitration demand against Nasdaq for the full extent of our losses over Nasdaq’s gross mishandling of the Facebook IPO in May 2012 and its substantial failures to perform its duties.”

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