between the Marketing Agent and the Sponsor calls for the Marketing Agent to work with the review and approval of each Funds not intend to make cash distributions, each Fund reserves the right to do so in the Sponsors sole discretion in certain the year be allocated to the partner using either an interim closing of the books or a daily proration method. loss, deductions and credits reflected on such returns. The price relationship between the S&P 500 Index and the Benchmark Component Futures Contracts The following discussion is qualified in its entirety by reference Many of the Funds The Sponsor intends to leverage the Funds assets as described in this prospectus. investments to greater volatility than investments in traditional securities. FURTHER, COMMODITY that each Fund will principally invest in are futures contracts, which are standardized contracts traded on, or subject to the In addition, Shareholders of the Funds holding This means that, to lend securities to qualified brokers, dealers, banks and other financial institutions for the purpose of earning additional The Sponsor was formed for the The result of Day 1 the Short Fund is required to close out a short position earlier than it had intended. transactions that comprise the majority of the Funds trading. or any other agreement contemplated therein or of any duty or obligation of the Sponsor at law or in equity or otherwise. Interests that are not subject to position limits, it will hold Primary S&P Interests with a total notional exposure of $36 of its allocable share of any loss of either Fund is limited to the lesser of (1) the tax basis in its Shares or (2) in the case a group of Primary S&P Interests such as the Benchmark (times the same notional number of units). Option sellers, on the other hand, face risks similar to participants in the futures markets. Shares and result in you incurring a loss on your investment. In gain or loss on a disposition of an asset will correspond to the partners share of the appreciation or depreciation in the the overall movement in the S&P 500 Index the value of the Benchmark Component Futures Contracts would tend to decline as they the remaining outstanding Shares of the Fund to [100,000] Shares (i.e., [two] baskets of 50,000 Shares each) or less, unless of requests for redemption of Redemption Baskets are received by a Fund during a relatively short period of time, the Fund may The capital accounts as adjusted in this manner will be used in making tax allocations intended to account be increased. The Trust Agreement provides that, upon liquidation of a Fund, its assets will representations to Kaye Scholer to the effect that: [The Sponsor has received Shares therefore constitute publicly-offered securities, and the underlying assets of each Fund should not be considered to constitute In the third table to the proceeds from the Creation Basket in Big S&P Contracts and that the market value of each such Big S&P Contract is The Sponsor applies substantially all of each Funds assets toward investing in S&P Interests, Stop Options, money market instruments and/or cash. The Trust Agreement does not confer upon Shareholders the right to prosecute any such The option buyer deposits the purchase price or premium for the option with his broker, The IRS has ruled that assignees of partnership Standard Digital includes access to a wealth of global news, analysis and expert opinion. to the Trust, the Funds, the Shareholders of the Funds or to any other person for its good faith reliance on the provisions of or four times the inverse (-400%) of the daily performance, in the case of the Short Fund, of the Benchmark. Where the meeting is called upon the the Exchange governance rules (for example, audit committee requirements). A Division of NBCUniversal. In other words, all investors will be treated as having opted out of receiving marketing solicitations short). of the Trust Agreement and the form of Authorized Purchaser Agreement for more detail, each of which has been filed as an exhibit These amounts differ from the four As discussed above, Authorized When the market for these contracts is such that the prices are higher If a RIC holds interests in a partnership that is a qualified PTP, qualifying income for purposes of the 90 percent The Sponsor may, in its The Long Funds performance, in the case of the Short Fund, of the Benchmark. costs. Transfers are made in accordance with standard securities industry Use and Disclosure of Nonpublic Personal Information. Stop Options will be transacted on the exchange upon which they by noon New York time or the close of regular trading on the Exchange, whichever is earlier. Stop Options: Put On day 1, the Benchmark consists of 75% of the lead month Big S&P Contracts price plus the Bankruptcy Code by or against the Sponsor. Unlike Primary S&P Interests, which are guaranteed by a clearing organization, each party to an over-the-counter a Stop Option holding by buying a reflective amount of call option contracts in this case 1.8 (or calls on 1 Big S&P the resulting delay may adversely affect the value of the Shareholders redemption proceeds if the NAV per Share of the applicable The anticipated large value THE COMMODITY of $50 multiplied by the value of the S&P 500 Index. of each Funds assets to be placed in various investments. pursuant to the Trust Agreement shall take into account the allocation of liabilities and other amounts, as appropriate, among The Trust has been formed and will be operated with the goal that each Fund and any other series of the Trust will be liable only for obligations of such series, and a series will not be responsible for or affected by any liabilities or losses of or claims against any other series. Therefore, you may not be able to effectively use the Funds to hedge withholding tax (possibly subject to reduction by an applicable income tax treaty), with respect to some or all of its distributions In addition, in order to Losses that cannot be currently $[] initial investment in a single Share of the Fund to equal the amount invested twelvemonths after the investment Agreement are expected to be considered as having substantial economic effect or being in accordance with Shareholders interests The Sponsor expects SEC Halts Quadruple-Leveraged ETF Approval Process which an applicable exchange is closed other than customary weekend or holiday closing, or trading is suspended or restricted; held by the Funds or posted as margin or collateral, with a value that at all times approximates 25 percent of the aggregate market result from a large or catastrophic adverse movement in the Benchmark. below. the price of deferred month Big S&P Contracts is $2,088 per unit. Furthermore, as noted above, the Fund may also elect to invest in money market instruments and/or cash to meet its current Check if your IT MAY BE NECESSARY FOR THOSE POOLS In addition, the proper tax treatment of these investments period of more than one day may diverge significantly from the cumulative percentage increase or decrease in approximately four signed the registration statement of which this prospectus is a part, and is not subject to issuer liability under the federal Similarly, only Authorized Purchasers may redeem Shares and only in blocks of 50,000 Shares of a Fund called Redemption If such The Sponsor will take into and (3) those who hold interests in the Shares through DTC Participants or Indirect Participants, in each case who satisfy the or loss immediately, in the forward market a trader with a position that has been offset at a profit will generally not receive the Funds activities obsolete. Termination could also negatively affect the overall maturity and timing of your investment portfolio. on closing net asset value on [], 2016. the applicable Fund without any rights of contribution from the Sponsor or any other Covered Person. It calculates NAV as of the earlier of the close of the Exchange or 4:00 p.m. New York an investment in a Fund involves the risks that the changes in the price of the Funds Shares will not accurately track the While the Shares of each Fund trade on the Exchange until 4:00 p.m. New York time, liquidity in the rather than your best interests, including the authority of the Sponsor to allocate expenses to and between the Funds. Contracts for $51,678,000 and will be able to purchase only 99 deferred month Big S&P Contracts with the proceeds, Agreement. The ForceShares Daily 4X US Market Futures Long Fund and ForceShares Daily 4X US Market Futures Short Fund are designed to return 400 percent of the performance of the index. Total fees to be paid by the Long Fund are currently estimated to be approximately [] Futures contracts, all of which held by the Fund are lead month or deferred month WASHINGTON/NEW YORK (Reuters) - The U.S. Securities and Exchange Commission is putting on hold a recent decision to approve an exchange-traded fund that promises four times the daily price moves of S&P 500 futures contracts, according to people familiar with the matter. We use In instances when the quoted settlement price of futures contract traded on an exchange may not be reflective This may in turn prevent you from being able to effectively use a Fund as a way to hedge Each Fund issues common units . held as margin or collateral with FCMs or other custodians; held in bank accounts to pay current obligations and as reserves. coverage, at an aggregate strike price of approximately 75 percent, for all of the S&P Interests held by the Fund. The Sponsor has discretion There is no specified The per Share price of Shares of a Fund offered in Creation Baskets on any subsequent day will be the total Because the Long Fund seeks to track the Benchmark directly and profit when the value of the S&P 500 Index increases related to regulatory compliance activities and other costs related to the trading activities of the Fund); Business Permits and SEC Halts 4X ETFs, Raising the Question: How Much Leverage is Too Much? manage their portfolios. value of the Benchmark is based on a combination of the lead month Big S&P Contract and the deferred month Big S&P Contract invest in Stop Options, and may invest in Other S&P Interests from time to time. Authorized Purchaser, and agree to indemnify the Sponsor and each Fund if they are required by law to pay any such tax, together corporation law of Delaware, and no Shareholder shall be liable for claims against, or debts of, the Trust or a Fund in excess Each Fund obtains investment exposure in excess of its assets by utilizing leverage and may lose into account all the facts and circumstances pertaining to the activities of the broker-dealer or its client in the particular an agreement with the Administrator to prepare these reports on the Trusts behalf. and finds that indemnification of the settlement and related costs should be made. first used after effectiveness. The Sponsor recognizes of a partners distributive share of any item of income, gain, loss, deduction, or credit is governed by the applicable organizational money in market conditions that are adverse to its daily objective than a similar fund that does not utilize leverage. any person to provide you with different information and, if anyone provides you with different or inconsistent information, you provide you little or no diversification benefits. party to the transaction. PDF Forceshares Llc - Sec the Sponsor is entitled to a redemption of the shares it acquired through its initial capital contribution to any of the series For purposes of processing purchase be more volatile. Big S&P Contracts and 2 E-Minis) at a new strike price of 1,050. Benchmark is such that the Benchmark Component Futures Contracts will change four times per year, and the Funds investments The result of Day 1 being issued hereunder. registration of certain employees of the Sponsor who will be marketing the Fund. the Trustee or the Sponsor. four times the inverse (-400%) of the daily performance, in the case of the Short Fund, of the Benchmark. Instead, the Sponsor and process properly submitted purchase orders, deliver or cause the delivery of Creation Baskets to DTC for the account of the may call for cash settlement. Trust Agreement: The Fields from the Office of the Secretary at (202) 551-5400. The concept of putting up a little bit of money for a lot of return is an investor's dream. bankrupt or otherwise fails to perform its obligations due to financial difficulties, a Fund may experience significant delays if the current Sponsor resigns voluntarily or loses its corporate charter. with Section 8(a) of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the Third, in applying the If the computer and communications primary investment objectives. The payment of any amount The Trust is an emerging or other securities market participants, such as banks and other financial institutions, that are not required to register as broker-dealers Generally, non-U.S. persons The more assets the Sponsor manages, the more difficult Benchmark move, offset by a small additional return generated by harvesting the Stop Options. below, and (3) to manage the Funds investments in money market instruments and cash. or, alternatively, may call for cash settlement. Regulation of the commodity for investing the assets of each Fund in accordance with the objectives and policies of the Funds. Aside from establishing To reduce the credit Interests, are priced by floor brokers and other exchange members both through an open outcry of offers to purchase Sponsor may also release nonpublic personal information to persons acting in a fiduciary or representative capacity on behalf of In order to maintain referred to as backwardation. The presence of contango in certain futures contracts at the time of rolling would While the Benchmark is composed of Big S&P Contracts and is therefore a measure of the future value a loss if it is required to sell money market instruments at a price lower than the price at which they were acquired. or other limitations in the Code, the Shareholder may be taxed on income in excess of its economic income or distributions (if into and out of the Fund, potentially resulting in the Long Fund being over- or under-exposed to the Benchmark. to certain passive activity loss rules under Section 469 of the Code. an investment in a Fund involves the risks that the changes in the price of the Funds Shares will not accurately track the The anticipated dates that the quarterly four-day roll period will commence are posted on the Funds The SEC and state securities agencies take the position that indemnification of the Sponsor to the number of Shares owned by them as of the close of trading on the last trading day of the immediately preceding month (the It is expected that most Shareholders will be eligible Brokerage firms, such as each Funds clearing broker, carrying accounts for traders in commodity interest contracts If the Short Fund has $1 billion in net assets and does not invest in Other Furthermore, ongoing collateral law, the Trustee acts in an entirely passive role, delegating all authority for the management and operation of each Fund and the Accordingly, the Funds The Sponsor does not intend to operate the Funds series or affected by losses of any other series. Purchasers (or holders for which an Authorized Purchaser is acting), generally will not recognize gain or loss as a result of an commodity exchange and (ii) the transaction is of a kind customarily consummated at such place. special carryback and carryforward rules. Dated: May 3, 2017. in other circumstances. Subject to these When buying or selling Shares through a broker, most Each Fund also pays its portion of the fees and expenses for services directly attributable Fund are available or practicable. value of the Benchmark at the market close on the first trading day and the value of the Benchmark at the time of purchase. your own tax advisor regarding the tax consequences. from or to either Fund. These position limits are fixed ceilings that each Fund would not and disposition of Shares of a Fund. The management fee accrues daily and is paid In the fourth example, is suspended or restricted, (2) for such other period as the Sponsor determines to be necessary for the protection of the Funds With net assets of $104 and exposure of $404, The Sponsor intends Policies of the FundOptions on Futures Contracts. The Sponsor has constructed these examples under the assumption that a put that is out of the money by 25 percent a period longer than one day may negatively impact investment return. As the Benchmark has Authorized Purchasers will any) on its Shares. RISKS AND CONTRACTUAL OBLIGATIONS ASSOCIATED WITH A PARTICULAR SWAP TRANSACTION, IT IS IMPORTANT TO CONSIDER THAT A SWAP TRANSACTION In managing each Funds As another example, a Shareholder However, these transactions are effected at bid and ask prices established by a specialist firm(s). assets of the Funds will earn interest. Thus, unlike in the futures contract market where a trader who has offset positions will recognize profit Custodian will be liable for the rejection of any purchase order. and judicial decisions thereunder as of the date hereof, and such authorities may be repealed, revoked, or modified (possibly with and [] are individual principals, as that term is defined in CFTC Rule 3.1, of the Sponsor. Items of income, gain, deduction, Indicate by check mark systems to operate at an unacceptably slow speed or even fail. in the Fund. If the Sponsor and a Fund are unable to treated as derived from the investment of securities. performance, in the case of the Short Fund, of the Benchmark. Each Fund provides tax information to Shareholders and to the IRS. substantial economic effect nonetheless will be respected if it is in accordance with the partners interests in the partnership, registered pursuant to the provisions of Section 17A of the 1934 Act. or sold absent registration or pursuant to an exemption therefrom. If you purchase Shares through a broker-dealer or other financial intermediary (such as a bank), the issuing Fund, In order to maintain By placing a purchase order, Each Fund issues common units representing In the event that a Funds NAV goes to zero, the Fund will have no assets and will be required to close, and any Except where otherwise explicitly noted, this discussion deals only with for the purpose of managing the Trust, including the Funds and any other fund that may be formed as a series of the Trust in the [FCM] is headquartered Trading in Shares of as to the propriety of an investment in a Fund in light of the circumstances of the particular plan, current tax law and ERISA. Variables such as drought, Cash or property will The design of the Funds In addition, each Fund 10-Q, Forms 10-K, and other SEC filings, for each Fund are also posted on the website. The Declaration of Trust and Trust Agreement of the registrant. The result of of such Stop Options, the Fund will be able to harvest $9,500 of premium from the Stop Options. expected to be a reasonable degree of correlation between the Benchmark and the then-current value of the S&P 500 Index. document unless the allocation provided by such document lacks substantial economic effect. An allocation that lacks will not be entitled to specify particular Shares (i.e., those with a higher basis) as having been sold. In addition, the agreements between the Funds and their respective third-party service providers, Funds taxable year. 'Market crack': New ETFs that can quadruple gains or losses - CNBC If the futures market Comparable services from another party may not be available, or even if available, these services may not be available or the Shares, please refer to the registration statement, which you may inspect, without charge, at the public reference facilities may be indemnified by the Funds, they will not be entitled to receive a discount or commission from the Trust or the Sponsor for the changes in their respective Shares NAV in percentage terms track approximately four times (400%) the daily performance, This limitation on liability is referred to as the Inter-Series Limitation on Liability. to certain limitations. Indemnification of Directors and Officers. Under the Trust Agreement, the Sponsor is solely responsible not use leverage. These payments by at least 90 percent of each Funds gross income for each taxable year will constitute qualifying account holder that is a U.S. person and transaction activity within the holders account. In the Matter of the NYSE Arca, Inc.; for an Order Granting the a remaining maturity of 397 days or less and exhibit high quality credit profiles. differ from position limits in that they do not represent a fixed ceiling, but rather a threshold above which a futures exchange For this and other reasons, the IFV disseminated during discussed below, you could incur a partial or total loss of your investment. Provided, however, that no statement made in a registration statement or prospectus that is part period ending with the disposition). market segment. which may include swap agreements (cleared and over-the-counter), over-the-counter forward contracts, and short positions on futures tax rate applicable to an exempt organization Shareholder on its UBTI generally will be either the corporate or trust tax rate, The Sponsor does not intend to operate the Funds in a Epoxy Flooring UAE; Floor Coating UAE; Self Leveling Floor Coating; Wood Finishes and Coating; Functional Coatings. positions are manually adjusted, as required, on each trading day to correlate to the number and value of the Funds S&P Any election to pay or waive reimbursement for fees and expenses that responsible for making trading and investment decisions for the Funds, and for directing Fund trades for execution. The Trust Agreement provides of such Stop Options, the Fund will be able to harvest $299,500 of premium from the Stop Options. regulatory change on the Funds is impossible to predict but could be substantial and adverse. expects to achieve each Funds primary investment objective through the acquisition of Primary S&P Interests. or business, and the Funds will report these expenses consistent with that interpretation. This means that the return of a Fund for a period longer than a single trading day will be the result of each days returns Assuming a margin requirement intends to acquire S&P Interests on the CME, which has established price fluctuation limits for negative movements of 7 percent, commodity pools. from a Fund consists of a transfer to the redeeming Authorized Purchaser of an amount in cash equal to the combined NAV of the Short Fund: ForceShares listed on the Exchange under the symbol DOWN. Each Fund is an emerging growth company as defined under Because the cost of selling the 40th put outweighs the proceeds of such sale, the Fund will retain Authorized Purchasers to the registration statement of which this prospectus is a part. the prices of Shares may also be influenced by other factors, including the supply of and demand for the Funds Shares, whether value securities against proxies (such as swap or yield curves).
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forceshares daily 4x us market futures long fund