Order: In the Matter of QuantFX Asset Management Inc. et al.

Order
Download PDF

IN THE MATTER OF THE SECURITIES ACT,
R.S.O. 1990, c. S.5 AS AMENDED

- AND -

QUANTFX ASSET MANAGEMENT INC., VADIM TSATSKIN,
LUCIEN SHTROMVASER and ROSTISLAV ZEMLINSKY

ORDER
(Subsections 127(7) and 127(8))



WHEREAS on April 9, 2010, the Ontario Securities Commission (the “Commission”) issued a temporary order pursuant to subsections 127(1) and 127(5) of the Securities Act, R.S.O. 1990, c. S.5, as amended (the “Act”) ordering the following (the “Temporary Order”):

  1. that QuantFX Asset Management Inc. (“QuantFX”), Vadim Tsatskin (“Tsatskin”), Lucien Shtromvaser (“Shtromvaser”) and Rostislav Zemlinsky (“Zemlinsky”), collectively the “Respondents”, cease trading in all securities; and
  2. that any exemptions contained in Ontario securities law do not apply to the Respondents;

AND WHEREAS on April 9, 2010, the Commission ordered that the Temporary Order shall expire on the 15th day after its making unless extended by order of the Commission;

AND WHEREAS on April 13, 2010, the Commission issued a Notice of Hearing to consider, among other things, the extension of the Temporary Order, to be held on April 23, 2010;

AND WHEREAS on April 23, 2010 and October 13, 2010, the Commission extended the Temporary Order;

AND WHEREAS the Temporary Order expires on November 19, 2010;

AND WHEREAS on November 10, 2010, the Commission issued a Notice of Hearing pursuant to sections 37, 127 and 127.1 of the Act accompanied by a Statement of Allegations dated November 10, 2010, issued by Staff of the Commission (“Staff”) with respect to QuantFX, Tsatskin, Shtromvaser and Zemlinsky;

AND WHEREAS on November 17, 2010, the Commission issued an Amended Notice of Hearing to correct a typographical error;

AND WHEREAS on November 18, 2010, a hearing was held at 4:00 p.m. and Staff and counsel for QuantFX, Shtromvaser and Zemlinsky appeared before the Commission, Tsatskin did not attend the Hearing, but had advised Staff that he consents to Staff’s request for an extension of the Temporary Order and the Commission was satisfied that Staff properly served the Respondents;

AND WHEREAS on November 18, 2010, counsel for QuantFX, Shtromvaser and Zemlinsky advised the Commission that QuantFX, Shtromvaser and Zemlinsky consent to Staff’s request for an extension of the Temporary Order;

AND WHEREAS on November 18, 2010, the Commission considered the evidence and submissions before it and the Commission was of the opinion that it was in the public interest to extend the Temporary Order;

AND WHEREAS the Commission ordered that:

  1. pursuant to subsections 127(7) and (8) of the Act, the Temporary Order be extended to January 27, 2011;
  2. the hearing in this matter be adjourned to January 26, 2011 at 12:00 p.m. or on such other date as provided by the Secretary’s Office and agreed to by the parties; and
  3. the purpose of the hearing to be held on January 26, 2011 be to set dates for the hearing on the merits;

AND WHEREAS on January 26, 2011, a hearing was held at 12:00 p.m. and Staff appeared before the Commission and no one appeared on behalf of any of the Respondents;

AND WHEREAS Staff requested an extension of the Temporary Order for six weeks to March 8, 2011;

AND WHEREAS Staff advised the Commission that Tsatskin and counsel for QuantFX, Shtromvaser and Zemlinsky consented to the extension of the Temporary Order and the adjournment of the hearing and the Commission was satisfied that Staff properly served the Respondents;

AND WHEREAS the Commission ordered that the Temporary Order be extended to March 9, 2011 and that the hearing in this matter be adjourned to March 8, 2011 at 12:00 p.m.;

AND WHEREAS on March 8, 2011, a hearing was held at 12:00 p.m. and Staff appeared before the Commission and no one appeared on behalf of any of the Respondents;

AND WHEREAS the Commission was satisfied that the Respondents were properly served with notice of the hearing;

AND WHEREAS Staff advised the Commission that counsel for QuantFX, Shtromvaser and Zemlinsky consented to an adjournment of the hearing and an extension of the Temporary Order for one month;

AND WHEREAS Staff requested that the hearing be adjourned and the Temporary Order extended for approximately six weeks;

AND WHEREAS the Commission is of the opinion that it is in the public interest to extend the Temporary Order;

IT IS ORDERED that the Temporary Order is extended to April 28, 2011 and that the hearing in this matter is adjourned to April 27, 2011 at 10:00 a.m. or on such other date as provided by the Secretary’s Office and agreed to by the parties, subject to the right of the parties to make further submissions on the appropriate date and time to which this Temporary Order is extended.

 

DATED at Toronto this 11th day of March, 2011.

 

" Mary G. Condon "
Mary G. Condon