Instinet LLC has agreed to pay a fine as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From at least January 2019 through the present, Instinet violated FINRA Rules 3110 and 2010 by failing to establish and maintain a supervisory system, including written supervisory procedures (WSPs), that was reasonably designed to identify potentially manipulative trading by its clients.

During the same period, Instinet also failed to establish, document, and maintain risk management controls and supervisory procedures reasonably designed to manage the financial risks associated with its market access activity and to prevent the entry of erroneous orders. As a result, Instinet violated Exchange Act § 15(c)(3), Exchange Act Rule 15c3-5, and FINRA Rules 3110 and 2010.

For these violations, Instinet was censured, fined a total of $1.2 million, of which $178,027 is apportioned to FINRA; and assessed an undertaking to certify in writing that the firm has remediated the issues and implemented a supervisory system, including WSPs, reasonably designed to achieve compliance with applicable rules.