SEC Investigating Island ECN

SPECIAL REPORT

Instinet, the electronic agency securities broker, is apparently under US government investigation for possible price collusion on market data rebates from its Island subsidiary to Island's former parent company, online discount broker Datek. Ameritrade completed its acquisition of Datek on Sept. 9.

The US Securities and Exchange Commission (SEC) has taken legal steps to obtain information from the Island ECN as part of an investigation into alleged violations of regulations affecting alterna