In the Matter of BNY Mellon Securities LLC, Adm. Proc. File No. 3-14191 (Jan. 14, 2011) is a proceeding against a registered broker dealer. The Order claims that Respondent failed to reasonably supervise the manager on its institutional order desk and traders under his supervision from November 1999 through March 2008. During the period the order desk manager failed to meet his duty of best execution to certain customers. Orders were executed at stale or inferior prices which were frequently outside the National Best Bid and Offer at the time of execution. In some instances the orders were executed in cross trades with a favored handful of accounts held by hedge funds and certain individuals. While Respondent had written supervisory procedures establishing a best execution committee, it failed to set up procedures to follow-up on red flags. Respondent also did not have procedures to determine if the order desk manager was fulfilling his responsibility to conduct a daily best execution review of executions on regional exchanges. Although Respondent maintained statistics which showed if executed orders were outside quote at a greater rate than industry averages, beginning in the third quarter 2003 there were no procedures to follow-up. The procedures for monitoring best execution obligations on regional exchanges were also inadequate. As a result of this conduct Respondent failed to reasonably supervise the order desk manager and his traders with the meaning of Exchange Act Sections 15(b)(4)(E) with a view to preventing and detecting violations of Securities Act Section 17(a). To resolve the matter Respondent agreed to certain undertakings and consented to the entry of a censure. Respondent also agreed to pay disgorgement of $19,297,016 along with prejudgment interest and a civil penalty of $1,000,000. The penalty was limited to that amount based on the cooperation of Respondent. It discovering the violations by beginning an investigation promptly after the Commission charged one of the hedge funds in an unrelated matter, terminating the desk manager and self-reporting.