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Friday, November 15, 2019

Canadian Failure-to-Supervise Case is Settled


Date: Thursday, June 20, 2002

TORONTO—The Ontario Securities Commission approved a settlement June 17 of its staff’s failure-to-supervise allegations against hedge fund manager Mark Kassirer, formerly chairman of Phoenix Research and Trading Corp. Phoenix Research managed several hedge funds, including Phoenix Fixed Income Arbitrage LP. The fund collapsed in the early days of 2000 because one of its fixed-income traders had accumulated a US$3.3 billion unhedged long position in U.S. 6% treasury notes due Aug.15, 2009. The staff of the OSC charged that Mr. Kassirer was at fault through his failure to supervise that trader, Stephen Duthie. “Staff alleged that Kassirer failed to monitor adequately, and provide appropriate general oversight of, the business of Phoenix Canada including that related to the UST Notes,” said the OSC statement June 17. Mr. Duthie had never himself been registered with the OSC in any capacity.