CNBC has flushed out its story on the losses it says UBS suffered when Nasdaq systems froze up on the day that Facebook started trading, and it will likely sound familiar to anyone who’s every used a credit card to buy something online. UBS wanted to buy 1 million shares in Facebook, according to CNBC’s sources, and when the bank’s traders didn’t receive confirmations on the trade, they kept pressing the buy button. When Nasdaq finally started sending confirmations, UBS found itself on the hook for multiple orders, which is why CNBC is reporting losses of $350 million.
A UBS spokesman sent the following statement:
Given the size of our US Equities business and our role as a major market maker, UBS was affected by these issues, as we believe other market participants may have been.
Consistent with our policy on market comments on our positions or intra-quarter performance, we are not disclosing the amount of the loss, which is not material to UBS.
We are continuing to consider avenues to recover our losses in this matter, but have not yet taken legal action.