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Hedgeye Director of Research Daryl Jones appeared on CNBC’s Closing Bell this afternoon along with Sadis & Goldberg Partner Ron Gefner to discuss the problems associated with the Facebook (FB) IPO.

Nasdaq’s systems had problems throughout the morning of the IPO and when trading in Facebook finally began, the exchange encountered all sorts of errors. As a result, multiple trading firms such as UBS, Knight and Citadel have brought forth lawsuits as a result of losses stemming from the IPO. UBS alone lost $355 million and is now seeking to recoup the entire amount from Nasdaq.

As Jones noted, Nasdaq has only put aside $62 million in a legal fund related to the botched Facebook IPO. The exchange must find out who is owed money and specifically, how much cash is owed to each firm.

“The stock should have been halted,” said Jones. Nasdaq knew of the issues associated with their IPO system and should have pushed the Facebook debut back a day in order to make sure everything was working correctly. “UBS had to keep putting orders in trying to get confirmation for their clients…it’s their job,” added Jones.