Knight Backs Nasdaq Plan to Pay Back Facebook Losses

http://online.wsj.com/article/SB10000872396390443864204577621360863959798.html

Knight Capital Group Inc. [KCG -2.14%] voiced support for Nasdaq OMX Group Inc.'s [NDAQ -0.70%] proposal to pay back firms damaged by the exchange's mismanagement of the Facebook Inc. [FB +0.48%] stock-market debut.

The electronic trading and brokerage firm objected, however, to Nasdaq OMX's intention to require firms seeking a piece of the planned $62 million compensation package to waive legal claims against the exchange company.

Knight's backing of the Nasdaq OMX payback plan, in a letter sent to regulators Wednesday, follows protests last week lodged by banks UBS AG [UBS -2.32%] and Citigroup Inc., [C -1.07%] both of which called the proposal underwhelming and poorly constructed.

Knight, based in Jersey City, N.J., lost $35.4 million trading shares of Facebook on May 18 following its initial public offering, a session marred by technology failures at Nasdaq that left firms guessing for hours at their positions in Facebook.