Compliance Weeds : Two weeks ago, Merrill Lynch, Pierce, Fenner & Smith Incorporated agreed to pay a fine of US $2.5 million to resolve charges brought by the CFTC that, from January through October 2010, the firm failed to diligently supervise responses to a CME Group Market Regulation investigation related to block trades executed by its affiliate, Bank of America, N.A. ("BANA") on the Chicago Mercantile Exchange and the Chicago Board of Trade. However, from the facts included in the CFTC's settlement order with Merrill as well as BANA's separate settlement with the US Attorney's Office for the Western District of North Carolina, it is unclear what Merrill might have failed to supervise. From all referenced facts, it appears that Merrill was misled by BANA regarding BANA's handling of the relevant block trades and had no reason to believe it was being misled.