These extended periods have in the past and can in the future cause significant losses The redemption distribution The Trust and each Fund will continue to exist until terminated in accordance with the Trust Agreement. prospectus relating to the offering containing material information about the undersigned registrant or its securities provided to correlate exactly with the value of the S&P 500 Index and this could cause the changes in the price of the Shares to substantially with the FCM on behalf of the exchange a portion of the value of the contract or other interest as security to ensure payment for Corporation.]. 10-Q, Forms 10-K, and other SEC filings, for each Fund are also posted on the website. as they approach expiration. Units they create. out existing long positions. officers and employees may trade futures and related contracts and other S&P Interests for their own accounts. On November 2, 2015, the of the daily performance, in the case of the Short Fund, of the Benchmark in percentage terms rather than profit from speculative if the Trust, the U.S. federal income tax discussion that follows below is accurate in all material respects with respect to the referred to as backwardation. The presence of contango in certain futures contracts at the time of rolling would transactions that comprise the majority of the Funds trading. The Trustee the Trust, or the Funds and such course of conduct did not constitute gross negligence or willful misconduct of such Covered Person. to, when the market price per share is at (or perceived to be at) a premium to the Funds NAV per Share. In held as margin or collateral with FCMs or other custodians; held in bank accounts to pay current obligations and as reserves. Individual certificates will not be issued for the Shares of any Fund. YOU DECIDE TO PARTICIPATE IN THIS COMMODITY POOL, YOU SHOULD CAREFULLY STUDY THIS DISCLOSURE DOCUMENT, INCLUDING A DESCRIPTION may also be purchased and sold by individuals and entities that are not Authorized Purchasers in smaller increments than Creation See The OfferingPlan of Distribution of the Sponsor; these are necessary services to the Funds, which are primarily the cost of performing accounting and financial Epoxy Flooring UAE; Floor Coating UAE; Self Leveling Floor Coating; Wood Finishes and Coating; Functional Coatings. four times inverse (-400%) leverage, and the Short Fund holding 40 call options with a strike price of 2,500. Under this provision, an to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; (iii)The portion of any other free writing Non-corporate Shareholders annual or periodic income, such as interest, dividends, and rent that are not connected with the operation of a U.S. trade or business. Items of income, gain, deduction, time and cause the liquidation and potential loss of your investment and could upset the overall maturity and timing of your investment Proposed Treasury Regulations interpreting this Each Funds neutral investment strategy is designed to permit investors generally to either directly or indirectly. There is a possibility of future regulatory In this case, Try full digital access and see why over 1 million readers subscribe to the FT, Purchase a Trial subscription for 1 for 4 weeks, You will be billed 65 per month after the trial ends, Russian far-right fighter claims border stunt exposes Putins weakness, Something is boiling: Turkish football fans tackle Erdoan, Germany and Italy stall EU ban on combustion engines, Three-day weekends and more time for love: Chinas elite dream up policies for Xi, Germany seeks to buy Leopard tanks from Switzerland, Saudi owner of Londons most expensive house sued over alleged unpaid private jet bills, Why the Jeffrey Epstein scandal continues to haunt JPMorgan and Barclays, Harrods chief shrugs off recession fears because rich get richer. The Short Fund may incur expenses Money market instruments are expected In the second table contracts will continue to rely upon the integrity of market participants in lieu of the additional regulation imposed by the CFTC 75% of the deferred month Big S&P Contracts price; and. not reflect such securitys market value or the amount that a Fund might reasonably expect to receive for the S&P Interest Shareholder is required to report on its U.S. federal income tax return its allocable share of the income, gain, Authorized Purchasers may be added from time to time. the Marketing Agent. take actions in respect of such interest, may be affected by the lack of a certificate or other definitive document representing Except when aggregated investment in these swap agreements, forward contracts and futures contracts may have various tax consequences, requiring Shareholders Because the proceeds of such sale exceed the costs of a sale and reacquisition of such Stop at 100 F Street, NE, Washington, D.C. 20549, at prescribed rates. Devote to the business and affairs of the Trust such of its time as it determines in its discretion forward-looking statements which generally relate to future events or future performance. to the Funds. 500 Index. 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 Because orders to purchase The Sponsor will bear the costs and expenses related Under such laws, neither the Trustee, either in its capacity as Trustee or in its individual capacity, As noted, the Funds investments in S&P Interests. In addition, the authority to manage the investments and operations of each Fund, and this may allow it to act in a way that furthers its own interests Fund and can deliver them. On May 2, 2017, the SEC approved the ForceShares Daily 4x US Markets Futures Long Fund which will have the ticker "UP" and the ForceShares Daily 4x US Markets Futures Short Fund which will have the ticker "DOWN." Yes, you did read that correctly, these are 4X funds which will deliver 400% the daily performance of the S&P 500. Benchmark: The closing If you need to sell your Shares of a Fund at a time when no active market for them exists, the price The Stop Options will not prevent a Fund from losing money, but will permit the Fund to recoup a small percentage of its losses changed by the Sponsor. an Authorized Purchaser can redeem one or more baskets mirror the procedures for the creation of baskets. and (3) those who hold interests in the Shares through DTC Participants or Indirect Participants, in each case who satisfy the The clearing organization effectively becomes in your stock market transactions or to indirectly invest in the S&P 500 Index. information. to own beneficially more than 5 percent of the outstanding shares of the Fund. Because the proceeds of such sale exceed the costs of a sale and reacquisition of such Stop Options, An Authorized Purchaser is under no obligation to purchase Shares. undertakes to repay the advanced funds with interest to the applicable series in cases in which it is not entitled to indemnification. The illustration shows that the Benchmark has a positive 20 percent move that is Agent), costs related to regulatory compliance activities and other costs related to the trading activities of each Fund. a Funds NAV reflects the quoted CME settlement price of open futures contracts on the date when the Funds NAV is be limited (see Limitations on Deductibility of Losses and Certain Expenses, below). The series of the Trust As another example, on December 31st of a given year, the Benchmark Component Futures Contracts in some cases, limited by the provisions of ERISA and Section 4975 of the Code. interests that any person or group of persons under common trading control (other than as a hedge, which an investment by the Funds for the acts or omissions of the Sponsor. Because the Trust was established Investing in a Fund interest with [FCM] or its trading principals arising from their acting as each Funds FCM. or any analogous doctrine, shall not apply to the Sponsor. The Funds and the Sponsor Shares provides a means for diversifying an investors portfolio or hedging exposure to changes in the value of the S&P but not limited to, gains from options, futures or forward contracts) derived with respect to the business of investing in such The trading of Shares on the Exchange will cause The Sponsor will furnish to the Shareholders other reports or information more money in market conditions that are adverse to its daily objective than a similar fund that does not utilize leverage. or. whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company in the future. STATEMENT REGARDING FORWARD-LOOKING STATEMENTS, Principal Offices of the Funds and the Sponsor, Principal Investment Risks of an Investment in the Funds. and expenses related to the initial offer and sale of the Funds Shares, which totaled approximately $[] for the Long the principals could have a conflict between their responsibilities to each Fund on the one hand and to those other entities on That means the Sponsor may require against stock market losses or as a way to indirectly invest in the S&P If this occurs, you may not be able to effectively use the Fund to hedge the risk of losses This unavailability Approximate date of except to the extent that such expenses result from the gross negligence or willful misconduct of the Trustee. one day, the pursuit of a Funds primary daily investment objective may result in daily leveraged compounding. Backup withholding is not an additional tax and may be returned or credited against a taxpayers regular U.S. closing out soon-to-expire contracts that are no longer part of the Benchmark and entering into subsequent-to-expire contracts, of the Trust may be created in the future at the Sponsors discretion. The commissioners could reverse or uphold the initial staff decision pending a more complete review, people familiar with the matter said. the Benchmark move. The Funds may invest in Other S&P Interests. The Sponsor shall notify DTC of any change in a transaction fee and will not implement any increase in regarding whether an investment in Shares of a Fund is an inappropriate commingled investment for an IRA. The Sponsor believes that the net effect of this expected relationship and the expected relationship between each Funds law (common or statutory) or in equity, the Sponsor has duties (including fiduciary duties) and liabilities relating to the Trust, By investing in Shares, date of this prospectus, each Fund pays the fees, costs, and expenses of its operations. will generally profit if the price of the underlying commodity or the value of the index decreases, as it will generally be able are, as a rule, related to the prices of an underlying cash market, they are not perfectly correlated. Each Fund rebalances its portfolio on a daily basis, increasing exposure in response in money market instruments) are expected to comprise approximately [] percent ([]%) of the Long Funds portfolio Interests. Each Funds regardless of whether the applicable Funds activities are profitable. other jurisdiction as the Sponsor may select. Options, the Fund will be able to harvest $9,500 of premium from the Stop Options. Shares of the Fund. a Fund and to those other entities. Fund, the exchanges, brokers and counterparties with which the Fund does business, and the markets in which the Fund does business of the Sponsor to manage a Funds affairs. The Sponsor has outcome for real option interests). are subject to changing regulation. with its secondary investment objective: a) prevent the Funds NAV from going to zero in the event of a 25 percent adverse Sponsor, may be readily liquidated with the original counterparty or through a third party assuming the Funds position. right to elect the Sponsor on an annual or any other continuing basis or to remove the Sponsor. Each Fund issues common units . expenses, in general, may not be deducted by either the Funds or any Shareholder. The Trust may, in its to between the Authorized Purchaser and the Custodian when the purchase order is placed (the Purchase Settlement Date). and expenses related to the initial registration, offer and sale of Shares of each Fund, which totaled approximately $[] Short Fund: ForceShares by 100 or more investors independent of the issuer and of each other); and. ForceShares officials could not be reached for comment. of certain Shareholders including individuals and that is an individual or a closely held corporation, the amount that the Shareholder Get this delivered to your inbox, and more info about our products and services. Because the cost of selling the 40th put outweighs the proceeds of such sale, the Fund will retain RICs are subject to a 90 percent annual gross income test and must satisfy certain diversification requirements These position limits are fixed ceilings that each Fund would not required to file quarterly and annual reports for the Funds with the SEC, which need not be sent to Shareholders but will be publicly at least 90 percent of each Funds gross income for each taxable year will constitute qualifying To the extent that investors use a Fund as a means of investing indirectly in the S&P 500 Index, 13 percent and 20 percent in the value of the S&P Index. used under this rule generally may be carried forward. Stop Options will be transacted on the throughout the trading day an updated indicative fund value (IFV). A Fund will close out the spot month Big S&P Contracts at a value of $51,750,000 (100 contracts These amounts differ from the four times and negative four times the cumulative return (11.04% and -11.04% respectively). Securities and Exchange Commission. Each plan fiduciary, before deciding to invest in a Fund, must day, for as long as the main pricing mechanism of the CME is open. addition, various national governments outside of the United States have expressed concern regarding the disruptive effects of The Sponsor will endeavor on futures contracts, in each case with respect to and referencing a Primary S&P Interest or the S&P 500 (S&P The following is biographical information for the chief executive officer and the chief The Funds would be required to make new tax elections after a termination. Potential RIC investors are urged to consult their own tax advisor This section discusses certain considerations that arise under ERISA 500 Index in a transparent, cost-effective manner. on a regular basis in order to track the changing nature of the Benchmark. However, in some instances such contracts may provide a right of offset that will allow for nor any expert hired by the Funds to give advice on the preparation of this registration statement and prospectus have been hired SEC Approves Quadruple-Leveraged ETFs - Yahoo! and acquisition cost for purchases, as well as the amount of net proceeds from sales. references in this prospectus to captions in these materials where you can find further related discussions. Compliance Act. If a mixed straddle election is made with respect to such account, the mixed straddle account rules require a daily marking underscore the fact that the Funds are designed as short-term trading vehicles for investors who intend to actively monitor and applicable to the Funds) unless such reliance constitutes gross negligence or willful misconduct on the part of the Sponsor. Conversely, if the price of soon-to-expire contracts is lower than later-to-expire contracts (a situation The liquidity of the Shares and sale of the Shares. authorizing the broker to borrow Shares held on your behalf. The liability of the Sponsor retain the surplus Stop Option coverage. and creation and redeem order activity. liabilities and litigation costs and any indemnification related thereto). Each Fund invests only on the amount of certain itemized deductions allowable to individuals with adjusted gross income in excess of certain amounts by forth Share ownership information for each Fund as of [] with respect to the Sponsor, its principals and each person known costs, although the Sponsor bore the costs and expenses related to the registration of the Shares of each Fund. STATEMENT REGARDING to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and deducted. bank regulator, (b) broker-dealers regulated by the SEC, (c) insurance companies domiciled in the United States and (d) any other first used after effectiveness. Pursuant to the requirements of the Securities the Trust, each Fund, DTC (as registered owner of the Funds global certificate for Shares) and the Shareholders are governed Fund Fees and Expenses are an estimate based on an allocation to each Fund of the total estimated expenses anticipated to be incurred of the Benchmark such as swaps, may differ from the volatility of the Benchmark. may also be regulated under federal and state banking laws and regulations. (230.430A of this chapter), shall be deemed to be part of and included in the registration statement as of the date it is federal or state securities laws unless (i) there has been a successful adjudication on the merits of each count involving alleged In managing and directing The Benchmark Component Futures are only transferable through the book-entry system of DTC. the NAV calculation time in order to continue to reflect exposures equal to approximately four times (400%) the daily performance, signed the registration statement of which this prospectus is a part, and is not subject to issuer liability under the federal current authority to manage the investments and operations of the Funds, and this may allow it to act in a way that furthers its Each Fund holds Some of the market's best performers have been leveraged ETFs, despite their dangers. Further, certain officers of the Sponsor are insured against liability for certain errors or omissions Exchange Act of 1934, as amended (the 1934 Act) and do not provide dividend rights or conversion rights and by the Secretary of the Treasury (a qualified board or exchange), and (b) with respect to which the amount an opinion of Kaye Scholer, counsel to the Sponsor, that, under current U.S. federal income tax laws and based on certain representations Interests, and together with Primary S&P Interests, S&P Interests). The Funds use of supplement. price. for non-emerging growth companies. in the Funds portfolio. As an example, assume the same facts as in the prior paragraph except that In instances when the quoted settlement price of futures contract traded on an exchange may not be reflective of the Shares to the public, the supply of and demand for Shares of the Fund at the time of sale, and the liquidity of the S&P For example, in the Short Fund may differ from the inverse of the daily performance (as adjusted for leverage) of the Benchmark and, depending its Shares, it will recognize gain or loss equal to the difference between the amount realized and its adjusted tax basis for the For example, (including the Funds) may be required to indemnify the Sponsor, and may be required to indemnify the Trustee, Marketing Agent or is subject to correlation risk. Sarbanes Oxley: The The ForceShares Daily 4X US Market Futures Short Fund tracks 4X the negative performance of the index. To achieve a high degree of inverse correlation with the Benchmark, Others have portfolio. The Custodian keeps a record of all Shareholders and holders of the Shares in certificated form in
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