A fast market or just a fast one?
By JACOB BUNGE
"Nasdaq OMX Group Inc. NDAQ +0.93% is sending a message to firms weighing lawsuits related to trading losses in Facebook's FB +4.65% initial public offering: Winning won't be easy.
Nasdaq is sending a message to firms weighing lawsuits related to trading losses in Facebook's initial public offering: winning won't be easy.
The exchange operator believes it is protected by its contracts with members and by its unusual legal status, which is rooted in its dual role as a regulatory body as well as a business that makes money running markets. Exchange officials in recent weeks have pointed out to analysts that Nasdaq has never been successfully sued over a trading error.
"When you look at member agreements that people sign, it's quite explicit that they're bound by that accommodation policy," Robert Greifeld, Nasdaq's chief executive, said last week at a Sandler O'Neill + Partners conference, referring to legal agreements capping the exchange's payouts linked to system problems.
Legal experts agree that the exchange has a strong defense, but note that it isn't ironclad."
This ought to take longer than the Apple/Proview suit. All of America will be divided into 2 camps: the Nasdaqards and the anti-Nasdaqards. Fights will break out in restaurants. Family members will stop talking to each other. Finally all of Wall Street will be devoured by the cost of legal proceedings.