On Thursday at 9:30 a.m., the Ontario Securities Commission will convene a hearing to consider a settlement reached by staff of the commission and the respondent John Blair Taylor.

From July 1997 to October 1999, Taylor was director of operations and Finance Phoenix Research and Trading Corporation’s. In November 1999, he was appointed the CFO. Taylor never was a registered officer of Phoenix Canada.

The Phoenix Fixed Income Arbitrage Limited Partnership was a hedge fund managed by Phoenix Canada. The partnership collapsed in early January 2000 when Phoenix Canada discovered that one of its fixed income traders had accumulated a $3.3 billion U.S. long position in U.S. 6% treasury notes due August 15, 2009. The notes were not hedged and resulted in a significant overdraft position at the Bank of New York. The partnership was forced to liquidate its assets, resulting in a loss of more than US$120 million.

OSC enforcement staff are alleging that Taylor failed to keep the proper books and records, establish and implement the appropriate controls and procedures, and adequately supervise his staff.