QUANTFX ASSET MANAGEMENT INC. and LUCIEN SHTROMVASER

WHEREAS:

(A)         On March 28, 2011, the Ontario Securities Commission (“OSC”) issued an order (“OSC Order”) against QuantFX Asset Management Inc. (“QuantFX”) and Lucien Shtromvaser (“SHTROMVASER”) approving a Settlement Agreement dated March 23, 2011 between the respondent and the Director, Enforcement Branch of the OSC (“OSC Settlement”);

(B)         On February 8, 2012, The Manitoba Securities Commission (“Commission”) issued a Notice of Hearing (“Notice”) giving notice of its intention to hold a hearing to consider whether or not it was in the public interest to grant orders pursuant to section 148.4 of The Securities Act, R.S.M. 1988, c. S50 as amended (“Act”) with respect to QuantFX and/or SHTROMVASER;

(C)         This hearing matter came before a panel of the Commission on March 21, 2012;

(D)         Upon reviewing the documentary evidence including the Affidavits of Service and hearing the submissions of counsel for staff of the Commission, no one appearing for the respondents, and upon being satisfied as to service upon the respondents, the Commission is of the opinion that it is in the public interest to make this order.

IT IS ORDERED:

1.                            THAT, pursuant to section 148 of the Act, SHTROMVASER cease trading in securities until and including March 28, 2013, subject to a carve-out to allow SHTROMVASER to trade securities for the account of any registered retirement savings plans and/or any registered retirement income funds (as defined in the Income Tax Act (Canada)) in which he and/or his spouse have sole legal and beneficial ownership, provided that:

(a)          the securities traded are listed and posted for trading on the Toronto Stock Exchange, the New York Stock Exchange, or NASDAQ (or their successor exchanges), are issued by a mutual fund that is a reporting issuer, or are debt securities;

(b)          he does not own legally or beneficially (in the aggregate, together with his spouse) more than one percent of the outstanding securities of the class or series of the class in question; and

(c)          he carries out any trading permitted by this order through a registered dealer (which dealer must be given a copy of this order) and through accounts opened in his name only (and he must close any trading accounts that are not in his name only).

2.                            THAT, pursuant to subsection 19(5) of the Act, subsection 19(1) of the Act, with respect to such of the trades referred to in that subsection, and subsection 19(2) of the Act, with respect to such of the securities referred to in that subsection, do not apply to SHTROMVASER until and including March 28, 2016.

3.                            THAT, pursuant to section 148.3 of the Act and the OSC Settlement, SHTROMVASER be prohibited from becoming or acting as a director or officer of any issuer, registrant, or investment fund manager until and including March 28, 2016.  

4.                            THAT, pursuant to section 148 of the Act, QuantFX cease trading in securities permanently.

5.                            THAT, pursuant to subsection 19(5) of the Act, subsection 19(1) of the Act, with respect to such of the trades referred to in that subsection, and subsection 19(2) of the Act, with respect to such of the securities referred to in that subsection, do not apply to QuantFX permanently.

BY ORDER OF THE COMMISSION

                                                                        Director, Legal and Enforcement