By Chris Dieterich NEW YORK--Knight Capital Group Inc. (KCG) is likely to express support for a revised proposal from Nasdaq OMX Group Inc. (NDAQ) to compensate brokers for losses stemming from Facebook's (FB) glitch-ridden IPO, according to a person familiar with the broker's position. Knight is expected to show its support in the form of a comment letter filed with the Securities and Exchange Commission, the person said. Knight expects to file its letter after the SEC opens a period allowing for comment on the Nasdaq proposal, the person said. A Nasdaq spokesman declined to comment. Knight reported last week a $35.4 million loss related to trading in Facebook's May 18 initial public offering. On Friday, Nasdaq submitted a plan to the SEC to increase to $62 million the amount of money it plans to pay back to brokers who say they lost money during Facebook's IPO. Payouts would be made within six months if approved by regulators, and made in cash. That is up from a previously planned $40 million plan that included $13 million in cash and $27 million in discounted trading fees. Knight was swayed to support the revised plan in roughly equal parts by the increased sum, Nasdaq's elimination of trading credits and Nasdaq's move to add an additional type of trade as eligible for compensation, the person said. Brokers and traders who participated in Facebook's first day of trading say they lost as much as $500 million amid the technology problems that hampered the social network's debut. (Jacob Bunge contributed to this article.) -Write to Chris Dieterich at christopher.dieterich@dowjones.com Subscribe to WSJ: http://online.wsj.com?mod=djnwires
