(Bloomberg) -- Canada’s Echelon Wealth Partners Inc. says it’s one of the firms that was caught with trading positions from doing business with a troubled hedge fund that has been suspended by regulators after the sudden death of its founder. 

That hedge fund, Traynor Ridge Capital Inc., was an institutional trading client of Echelon, Chief Strategy Officer Dominic Chow said by phone. 

Toronto-based Echelon conducted trades for the fund that failed to settle, leaving it holding securities for which it didn’t receive payment. Echelon has now sold those positions and no longer has any open market exposure, Chow said, declining to give details about the trades. 

The Ontario Securities Commission temporarily banned Toronto-based Traynor Ridge from trading on Monday, saying it needed time to investigate what happened to the firm, which appears to be in “serious financial difficulty.” 

Three brokerage firms have potential losses totaling about C$85 million to C$95 million ($61.5 million to $68.7 million) on trades they did for the hedge fund, the securities regulator said.

Market maker Virtu Financial Inc. disclosed separately in court documents filed Monday that it has incurred potential losses of at least C$5 million and that it was still trying to unwind the positions.    

Echelon is in touch with regulators about the matter, Chow said. “We’re not concerned about our ability to weather the situation,” he said. 

A lawyer for Traynor Ridge told regulators on Saturday that Christopher Callahan, its founder and principal, had died. A spokesperson for the Toronto Police Service said the death is not suspicious in nature.

Read More: Hedge Fund Manager’s Death Exposes Losses of Virtu, Other Firms

--With assistance from Geoffrey Morgan.

(Updates with new information on status of trading positions.)

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