Canadian hedge fund firm Traynor Ridge Capital Inc has been issued with a cease trader order by the Ontario Securities Commission (OSC) following the death of its founder, and three failed trading orders last week, according to a report by Reuters.

The regulator said it was informed on Saturday that Christopher Callahan, the sole director, officer and shareholder of Traynor, was dead, leaving the firm without anyone in charge .

In the order issued on Monday, the OSC said that during the week of 23 October, three introducing firms executed trades for Traynor but their carrying broker could not recapture the costs of the trades leaving them with potential losses totalling approximately CAD85m ($61.27m).

The OSC said that Traynor's prime broker CIBC World Markets Inc, a subsidiary of Canadian Imperial Bank of Commerce (CM.TO), has terminated its service agreement with the firm after it stopped responding.