Both banks have criticized the amount of compensation by the exchange operator’s voluntary all-cash offer, which it submitted to SEC for its approval, as reported by the Financial Times.
The newspaper reported citing people familiar with the matter that Citi may initiate legal action against the accused firm.
UBS said that it lost almost SFr349m ($365m) during the messed up trades, three weeks ago while Citi sustained approximately $20m in losses.
Although, the compensation plan created by Nasdaq has been backed by Citadel and Knight Capital, which are its one of the largest market-making clients.
The synonyms of social networking Facebook swallowed heavy losses, due to technical bungle flourished during the launch of its long awaited IPO.
Citi was quoted as saying in a letter to the SEC, "Nasdaq’s proposal simply fails to take into account the confusion, its known design flaw, insufficient failover procedures and reckless business judgment had on the market participants that trade there."
