An SEC-registered broker-dealer and FINRA member, agreed to pay a $1.575 million fine to settle charges from FINRA and several exchanges for violations Exchange Act Rule 15c3-5 (the "Market Access Rule"). Instinet, LLC ("Instinet") was charged with "failing to supervise trading to detect and prevent potentially violative and manipulative activity," and "failing to implement financial and regulatory risk management controls and procedures reasonably designed to prevent the entry of erroneous or duplicative orders, orders that exceeded appropriate pre-set credit or capital thresholds, or erroneous messaging activity resulting from malfunctioning customer algorithms and trading systems."
Without admitting to or denying the charges, Instinet also agreed to a censure and to implement controls and procedures to remedy the described Market Access Rule deficiencies.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
