The impact of the IPO issues Facebook worsened after Fidelity Investments found that “thousands” of customers experienced problems with market orders and Knight Capital sued the Nasdaq compensation for losses in transactions.
Nasdaq pressures are particularly intense, not only demands of investors and upset customers, but also by the prospect of potentially losing record after having recently obtained Facebook.
Experts say many investors are just realizing, after a week, that some of their market orders were not carried out the prices at which they had thought during the Public Offering that ended last Friday.
Fidelity said in a statement, which is working with regulators to address the concerns of their customers “and will continue until we are confident that NASDAQ has done everything possible to mitigate the impact to our customers.”
But the complaints of Knight Capital could end up minimizing the problems of Fidelity.
The amount of compensation which seeks Knight, one of the major players in the equity markets in the U.S., nearly triple the amount that Nasdaq has separate compensation for losses in operations.
“We certainly are facing the threat of some significant claims if the fund is not enough,” said a source familiar with the situation of Knight.
However, other firms said they had no similar problems, raising questions about the extent of losses.
“The problems were that people were trying to cancel orders, did not have that,” said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.
Category: Stock Market Trading