The Globe and Mail reports in its Thursday edition that Virtu Canada Corp. is suing Traynor Ridge Capital Inc., the Toronto-based hedge fund that was placed under a cease trade order Monday after its founder died, alleging Traynor failed to deliver money for trades it asked Virtu to execute, resulting in losses of at least $5-million. The Globe's Clare O'Hara and Tim Kiladze write that Virtu, a trading firm that executes orders on behalf of investment management clients, alleges that it placed 26 buy orders for Traynor in September and October, but never received the required money before the trades settled a few days later. Because Virtu was on the hook, the trading firm started selling the positions -- but by then the market had moved and Virtu realized losses "in excess of $5-million," an amount Virtu said is "not material." Virtu expects its losses on these failed trades to increase as more positions are unwound, according to the lawsuit, and is suing Traynor to recoup the money. Virtu did not disclose the stock positions or the total amount purchased for Traynor. Late Monday the Ontario Securities Commission placed Traynor, which has $95-million in assets under management, under a cease trade order.