National Bank, JonesTrading named as creditors in Traynor Ridge fallout

TORONTO – Ernst & Young Inc., the court-appointed monitor for Traynor Ridge Capital Inc., has identified additional potential creditors entangled in the hedge fund’s difficulties following the death of its founder, Chris Callahan. The new parties impacted include National Bank of Canada (OTC:) and JonesTrading Canada Inc., joining the previously recognized creditors Echelon Wealth Partners Inc. and Virtu Financial (NASDAQ:) Inc.

The Ontario Securities Commission (OSC) initiated an investigation into Traynor Ridge, resulting in a trading freeze that will remain in effect until February 8. This action comes after unsettled trades led to estimated brokerage losses between C$85 million and C$95 million. These losses stem from transactions that have yet to be resolved since the company ran into trouble earlier this month.

The OSC’s intervention highlights the regulatory scrutiny faced by financial entities in the wake of significant disruptions caused by leadership changes or operational issues. The freeze aims to safeguard the market and investors from further consequences as the investigation unfolds.

Creditors Echelon Wealth Partners, Virtu Financial, JonesTrading, and National Bank are now awaiting clarity on how the unresolved trades will affect their financial standing. Ernst & Young’s oversight is expected to bring transparency to the process and ensure that all parties involved are fairly represented as the situation progresses.

The appointment of Ernst & Young in early November signifies a critical step in managing Traynor Ridge’s assets and navigating through the complexities arising from Callahan’s unexpected death. The firm’s role is crucial in determining the full scope of the hedge fund’s liabilities and addressing the concerns of all affected creditors.

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