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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): May 16, 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>


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





<P ALIGN="JUSTIFY">&#9;On May 16, 2005, Instinet Group Incorporated ("Instinet") held its Annual Meeting of Stockholders at which the stockholders approved the Instinet Group 2005 Annual Cash Incentive Plan (&quot;Incentive Plan&quot;). The Incentive Plan is Instinet's new short-term incentive plan for certain of its senior executives.  The Incentive Plan is an annual cash bonus plan that is designed to comply with the requirements of Section 162(m) of the Internal Revenue Code which eliminates a federal income tax deduction for annual compensation in excess of $1 million paid by the company to certain executive officers in any one year unless that compensation is paid on account of attainment of one or more &quot;performance-based&quot; goals.  One requirement for compensation to be performance-based is that the compensation is paid pursuant to a plan that the stockholders have approved.  This plan will replace the Annual Bonus Plan for Instinet's executive officers and other key employees.  The Instinet Group 2005 Annual Cash Incentive Plan is attached hereto as Exhibit 10.1 and incorporated herein by reference.</P>





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





<P>(c) Exhibits</P>





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





<P>10.1&#9;&#9;Instinet Group 2005 Annual Cash Incentive Plan.</P>





<P>&nbsp;</P>


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


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


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


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<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: May 18, 2005</P>


<P>                                            By: /s/ John F. Fay</P>


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


<P>                                               John F. Fay</P>


<P>                                               Chief Financial Officer</P>





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


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





<P>&nbsp;</P>


<P>EXHIBIT NUMBER                  DESCRIPTION</P>


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


<P> </P>


<P>10.1&#9;&#9;&#9;&#9;Instinet Group 2005 Annual Cash Incentive Plan.</P>


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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): May 16, 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 May 16, 2005, Instinet Group Incorporated ("Instinet") held its Annual Meeting of Stockholders at which the stockholders approved the Instinet Group 2005 Annual Cash Incentive Plan ("Incentive Plan"). The Incentive Plan is Instinet's new short-term incentive plan for certain of its senior executives.  The Incentive Plan is an annual cash bonus plan that is designed to comply with the requirements of Section 162(m) of the Internal Revenue Code which eliminates a federal income tax deduction for annual compensation in excess of $1 million paid by the company to certain executive officers in any one year unless that compensation is paid on account of attainment of one or more "performance-based" goals.  One requirement for compensation to be performance-based is that the compensation is paid pursuant to a plan that the stockholders have approved.  This plan will replace the Annual Bonus Plan for Instinet's executive officers and other key employees.  The Instinet Group 2005 Annual Cash Incentive Plan is attached hereto as Exhibit 10.1 and incorporated herein by reference.
Item 9.01.  Financial Statements and Exhibits.
(c) Exhibits
Number	Description
10.1		Instinet Group 2005 Annual Cash Incentive Plan.
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: May 18, 2005
By: /s/ John F. Fay
------------------------
John F. Fay
Chief Financial Officer
EXHIBIT INDEX
EXHIBIT NUMBER                  DESCRIPTION
--------------                  -----------
10.1				Instinet Group 2005 Annual Cash Incentive Plan.