|October 12, 1998|
The SESC sent recommendation to the Prime Minister and the Commissioner of Financial Supervisory Agency to take disciplinary action against Instinet pursuant to Article 18(1) of Financial Supervisory Agency Establishment Law on October 12, 1998.
(Submitting transaction reports containing false statements to customer)
On May 18th, 1998 Instinet received sell order of over the counter stock from a customer and Instinet ordered sell order of over the counter stock from the agency.
At first, the chief of a section Trading Division informed the customer of wrong contents of transaction . Later, he noticed real contents of transaction when he confirmed contents of transaction from the agency.
But he did not want the customer to know his mistake. In this reason, after getting understanding of the head of the Trading Division, he did not contact the customer to correct.
And he inputted the price which was different from the real execution price to a computer deliberately. Consequently, the company submitted transaction reports containing false statements based on these wrong data.
(Violation of LFSF Article 37(3))