NEW YORK (Reuters) - Nasdaq OMX said on Friday its board of directors elected Börje Ekholm to serve as the interim chairman of the exchange operator, replacing Furlong Baldwin, who retired.
Ekholm, chief executive of Nordic-based industrial holding company Investor AB, Nasdaq’s No. 2 shareholder, steps into the position a week after technical glitches at Nasdaq led to a series of problems in Facebook’s highly anticipated initial public offering.
A software error delayed the social networking company’s market debut by 30 minutes last Friday. Many client orders were delayed, leading to significant losses to some investors and traders as the stock price dropped.
Four of Wall Street’s major market makers involved in the IPO expect their losses as a result of the problems to be around $115 million.
Other firms are expected to report additional losses from Facebook’s IPO, potentially adding millions of dollars in cumulative claims, sources have said. These include a loss of under $1 million by E*Trade Financial.
Regulators, including the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority and Massachusetts Secretary of the Commonwealth William Galvin are now looking into how the IPO was handled. The U.S. Senate Banking Committee is also reviewing the matter.
Reporting by John McCrank; Editing by Gary Hill