In the matter of Merrill Lynch, Pierce, Fenner & Smith, Inc., Admin. Proc. File No. 3-14204 (Jan. 25, 2011) alleges that the firm misused customer order information, charged certain customers undisclosed trading fees and failed to maintain proper records in violation of Exchange Act Sections 15(c)(1)(A), 15(g) and 17(a). The conduct on which the Order is based occurred from 2002 through 2007 and centers on three types of transactions. The first concerned the use of certain customer order information by the firm’s proprietary Equity Strategy Desk. The second involved improper mark-up and mark-down charges on orders for certain institutional and high net worth individuals, contrary to the firm’s representations to those customers. Finally, in some instances during the time period Merrill agreed to guarantee a customer a specific per-share execution price or a price tied to an agreed upon benchmark. The firm however failed to record them in writing as required by Section 17(a)(1). As a result of this conduct Merrill violated not only the Sections cited above but it also failed to reasonably supervise persons subject to its supervision as required by Section 15(b)(4)(E). To resolve the matter Merrill consented to the entry of a cease and desist order and agreed to pay a $10 million civil penalty.