New York (HedgeCo.net) – A technical glitch botching Facebook Inc.’s initial public offering on the Nasdaq stock exchange, has caused Citadel Securities’ market-making business to lose around $30 million, according to Reuters.
Luckily, Citadel’s hedge fund was not affected, the losses came when Citadel honored trades that were canceled or changed during a period of around two hours on Friday following Facebook’s market debut which led to orders not being confirmed.
Electronic trading company, Knight Capital Group, said that it had suffered a pre-tax loss of $30 million to $35 million. Knight is demanding compensation for it’s losses and said it would take legal action against Nasdaq if necessary.
“It was not clear if Citadel was planning to pursue legal remedies.” Reuters said.
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