Regulator imposes trading halt on Canada hedge fund after founder's death

(Reuters) - The Ontario Securities Commission (OSC) said it had issued a cease trade order to hedge fund manager Traynor Ridge Capital Inc following the death of its founder, and three failed trading orders last week.

The regulator said it was informed on Saturday that Christopher Callahan, the sole director, officer and shareholder of Traynor, was dead.

His death leaves Traynor without a director or officer in charge of the firm.

During the week of Oct. 23, three introducing firms executed trades for Traynor but their carrying broker could not recapture the costs of the trades, the OSC said in the order issued on Monday.


"As a result, the three dealers have potential losses totalling approximately C$85 million ($61.27 million) to C$95 million," the regulator added, without naming the dealers.

CIBC World Markets Inc., a subsidiary of Canadian Imperial Bank of Commerce, was Traynor's prime broker and has terminated its service agreement with Traynor because the firm had stopped responding, the OSC said.

CIBC did not immediately respond to a request for comment.

Traynor is a Toronto-based alternative investment management firm, according to its website, and manages three prospectus-exempt funds known as the TR1 Funds.

It was incorporated in 2019, according to the OSC.

The firm and one of Callahan's colleagues listed on its website did not immediately respond to requests for comment.

A Toronto police spokesperson said Callahan's death was not considered suspicious and they were not investigating.

($1 = 1.3874 Canadian dollars)

(Reporting by Nia Williams in British Columbia; Editing by Jamie Freed)