Bank of America Corporation and Merrill Lynch, Pierce, Fenner and Smith Incorporated settled charges brought by the New York State Attorney General that the firms (collectively, “BofAML”) fraudulently misled customers regarding their electronic trading services. Specifically, the NYAG claimed that, beginning March 2018, BofAML entered into arrangements with electronic liquidity providers to execute a portion of its institutional clients’ orders. However, charged the NYAG, BofAML failed to disclose this arrangement to its clients, and instead advised them their orders were executed in-house. Moreover, said the NYAG, BofAML amended post-trade messaging to disguise the nature of executions to their clients, and on occasion, BofAML failed to disclose this execution arrangement when expressly asked by their clients about how orders would be routed. BofAML agreed to pay a fine of US $42 million to resolve this matter.