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<P ALIGN="CENTER">UNITED STATES</P>


<P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</P>


<P ALIGN="CENTER">WASHINGTON, D.C. 20549</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">-----------------------</P>





<P ALIGN="CENTER">FORM 8-K</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">-----------------------</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">CURRENT REPORT</P>


<P ALIGN="CENTER">PURSUANT TO SECTION 13 OR 15 (d) OF THE</P>


<P ALIGN="CENTER">SECURITIES EXCHANGE ACT OF 1934</P>





<P ALIGN="CENTER">Date of report (Date of earliest event reported): January 3, 2005</P>





<P ALIGN="CENTER">Instinet Group Incorporated</P>


<P ALIGN="CENTER">-----------------------------------------------------------------------</P>


<P ALIGN="CENTER">(Exact Name of Registrant as Specified in Charter)</P>





<P ALIGN="CENTER">Delaware                      000-32717              13-4134098</P>


<P>---------------------------------------------------------------------(State or Other Jurisdiction   (Commission File     (IRS Employer       of Incorporation)                    Number)        Identification No.)</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">3 Times Square, New York, New York                          10036</P>


<P ALIGN="CENTER">-----------------------------------------------------------------------(Address of Principal Executive Offices)                 (Zip Code)</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">Registrant's telephone number, including area code: 212-310-9500</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">Not Applicable</P>


<P ALIGN="CENTER">-----------------------------------------------------------------------</P>


<P ALIGN="CENTER">(Former Name or Former Address, if Changed Since Last Report)</P>


<P ALIGN="CENTER"></P>


<P>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</P>





<P>_ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>





<P>_ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>





<P>_ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>





<P>_ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>





<P>&nbsp;</P>


<B><P>ITEM 1.01. Entry into a Material Definitive Agreement.</P>


</B>


<P ALIGN="JUSTIFY">On November 23, 2004, Instinet Group Incorporated ("Instinet") announced the election of Robin Josephs to Instinet's Board of Directors.  Ms. Josephs was elected to Instinet's Board of Directors on November 17, 2004 with her appointment effective January 1, 2005.   The Director Compensation Letter is filed as Exhibit 10.1 hereto and incorporated herein by reference. </P>





<B><P>Item 9.01.  Financial Statements and Exhibits.</P>


</B>


<P>(c) Exhibits</P>





<P>Number&#9;Description</P>





<P>10.1        Director Compensation Letter between Instinet Group Incorporated and Robin Josephs, dated January 3, 2005.</P>





<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">SIGNATURES</P>





<P>Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized.</P>





<P>                                           INSTINET GROUP INCORPORATED</P>


<P>                                                    Registrant</P>





<P>Date: January 3, 2005</P>


<P>                                            By: /s/ Edward J. Nicoll</P>


<P>                                               ------------------------</P>


<P>                                               Edward J. Nicoll</P>


<P>                                               Chief Executive Officer</P>





<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">EXHIBIT INDEX</P>





<P>&nbsp;</P>


<P>EXHIBIT NUMBER                  DESCRIPTION</P>


</FONT><FONT FACE="Courier New" SIZE=2><P>--------------                  -----------</P>


<P>10.1            Director Compensation Letter between Instinet Group Incorporated and Robin Josephs, dated January 3, 2005.</P>


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<P ALIGN="RIGHT">Exhibit 10.1</P>


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<P>&nbsp;</P></DIR>


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<DOCUMENT>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------------
FORM 8-K
-----------------------
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): January 3, 2005
Instinet Group Incorporated
-----------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware                      000-32717              13-4134098
---------------------------------------------------------------------(State or Other Jurisdiction   (Commission File     (IRS Employer       of Incorporation)                    Number)        Identification No.)
3 Times Square, New York, New York                          10036
-----------------------------------------------------------------------(Address of Principal Executive Offices)                 (Zip Code)
Registrant's telephone number, including area code: 212-310-9500
Not Applicable
-----------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
_ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
_ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
_ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
_ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01. Entry into a Material Definitive Agreement.
On November 23, 2004, Instinet Group Incorporated ("Instinet") announced the election of Robin Josephs to Instinet's Board of Directors.  Ms. Josephs was elected to Instinet's Board of Directors on November 17, 2004 with her appointment effective January 1, 2005.   The Director Compensation Letter is filed as Exhibit 10.1 hereto and incorporated herein by reference.
Item 9.01.  Financial Statements and Exhibits.
(c) Exhibits
Number	Description
10.1        Director Compensation Letter between Instinet Group Incorporated and Robin Josephs, dated January 3, 2005.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized.
INSTINET GROUP INCORPORATED
Registrant
Date: January 3, 2005
By: /s/ Edward J. Nicoll
------------------------
Edward J. Nicoll
Chief Executive Officer
EXHIBIT INDEX
EXHIBIT NUMBER                  DESCRIPTION
--------------                  -----------
10.1            Director Compensation Letter between Instinet Group Incorporated and Robin Josephs, dated January 3, 2005.
Exhibit 10.1