By Reuters Reporter PUBLISHED: 23:24 EST, 31 July 2012 | UPDATED: 23:26 EST, 31 July 2012 When the confirmations finally came through, UBS and other market makers were left owning large amounts of unwanted Facebook stock, which led to losses as the stock plunged. It also is unclear what role UBS's own trading system might have played in the losses or what action the company will take to recoup the $356million. 'There may be limitations on recoveries UBS may receive,' said former SEC lawyer Ron Geffner, a partner at Sadis & Goldberg LLC in New York. 'That said, it is such a black eye for the Nasdaq that they're highly motivated in resolving all litigation before it spins further out of control.'
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UBS lost $356 in the May Facebook IPO and is now suing Nasdaq
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Nasdaq interested in resolving matter as quickly as possible
When the order confirmations did not come back to UBS from @placeholder quickly, the systems designed to ensure customers get the best execution and proper trade execution -- something required by regulations governing firms like UBS -- were forced to scan the firm's limit order books repeatedly in order to comply with regulations, said two sources with knowledge of the situation.