In the Matter of Instinet, LLC Admin. Proc. File No. 3-15663
Oct. 14, 2022
On December 26, 2013, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Instinet, LLC (the “Respondent”). In the Order, the Commission found that, from January 2009 through July 2010, the Respondent paid approximately $430,000.00 in client commission credits called soft dollars as requested by its customer, J.S. Oliver Capital Management, L.P. (“JS Oliver”), a San Diego-based investment adviser, for expenses that JS Oliver had not properly disclosed to its clients.
The Commission ordered, and the Respondent has paid, a total of $813,281.42 in disgorgement, prejudgment interest, and civil money penalties. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalties, along with the disgorgement and interest, collected can be distributed to those harmed by the Respondent’s misconduct described in the Order (“Fair Fund”). See the Commission’s order: Release No. 34-71191.
For more information, please contact the Commission:
Office of Distributions