Press Release 

October 12, 1998

     The Securities and Exchange Surveillance Commission (SESC)  conducted the inspection of 
Instinet Japan Limited Tokyo Branch (Instinet) based on the provisions of the Law on Foreign 
Securities Firms (LFSF)  and found legal violations described below.
     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) ）　　　　　　　　　　　　　　  

Return