The Securities and Futures Commission ("SFC") has fined Instinet Pacific Limited $8 million for failing to report 8,817 cross trades worth around $25.9 billion to The Stock Exchange of Hong Kong Limited ("SEHK"). The breach occurred between December 2012 and March 2018.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On September 08, 2025, the Securities and Futures Commission ("SFC") imposed a financial penalty of $8 million against Instinet Pacific Limited (Instinet) for failing to comply with the reporting requirements of The Stock Exchange of Hong Kong Limited ("SEHK") for direct business transactions or cross trades.
Between December 2012 and March 2018, Instinet's non-compliance involved 8,817 pairs of unreported cross trades, totaling approximately $25.9 billion, in violation of the reporting rules. The SFC’s investigation uncovered that during this period, Instinet lacked internal policies and procedures for reporting cross trades to the SEHK, and no reviews were conducted on their trade reporting processes.
The SFC’s decision on the disciplinary action considered the duration of Instinet’s non-compliance, the volume of unreported trades, and the total value involved. It also noted Instinet's proactive steps to cease the relevant trade flows and its cooperation with the SFC in addressing their concerns.
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