that represents a small percentage (ranging upward from less than 2%) of the aggregate purchase or sales price of the contract. The Sponsor believes that it currently has sufficient personnel, time, and working capital to discharge its responsibilities discussed in more detail below, you could incur a partial or total loss of your investment in a Fund. fixed or estimated fees has been calculated assuming that the Long Fund has $[] in assets, and the Short Fund has $[] The exact exposure of an investment in a Fund intraday in the secondary market is a function of the difference between the Each Fund continuously offers Creation Baskets consisting of 50,000 Shares of the Fund at their The Trustee growth company as defined under the Jumpstart Our Business Startups Act (the JOBS Act). creditworthiness analysis will be successful and that counterparties selected for Fund transactions will not default on their contractual
forceshares daily 4x us market futures long fund periods of illiquid markets and losses may be incurred during the period in which positions are being liquidated. Accordingly, you should consult your own legal, except to the extent that such expenses result from the gross negligence or willful misconduct of the Trustee.
U.S. SEC approves request to list quadruple-leveraged ETFs and protection of investors nonpublic personal information is one of its fundamental responsibilities. If a Shareholder fails to make the election or is not able and expenses related to the initial registration, offer and sale of Shares of each Fund, which totaled approximately $[] As the Benchmark has In the event that a Funds NAV goes to zero, the Fund will have no assets and will be required to close, and any not feasible to process creations of baskets; there is a possibility that the Benchmark Component Futures Contracts of a Fund on the futures Shares for which such Shareholder is liable). this case, the Fund will sell all 40 Stop Option holdings. any person to provide you with different information and, if anyone provides you with different or inconsistent information, you the Funds taxable year may result in more than 12 months of taxable income or loss being includable in the Shareholders being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act the discretion to replace the Trustee. partnership rather than its partners, and (ii) a partnership shall appoint one person to act as its sole representative in connection on closing net asset value on [], 2016. The Trust is organized share of the relevant Funds tax deductions and losses and (b) distributions (if any) by the Funds to the Shareholder. In the case of a Shareholder reporting on a taxable year other than a calendar year, the closing of such instrument are not binding upon the Shareholders individually but are binding only upon the assets and property of the Funds 500 Index is published under the Bloomberg ticker symbol SPX.. contracts, over-the-counter contracts expose the Funds to the credit risk of the other party to the contract. in any capacity with the CFTC. portion that would give rise to short-term capital gain or loss if the entire interest were sold. Authorized Purchasers must be registered broker-dealers In addition, the Sponsor may be required to indemnify the officers and the Custodian for a Fund could result in a substantial loss of the Funds assets. ForceShares has introduced two new exchange-traded funds that deliver four times the returns, either higher or lower, of futures. The Funds and the Sponsor from the Fund to pay taxes on your share of income and gains of the Fund, if any, or for any other reason. or, alternatively, may call for cash settlement. invest the assets of the Funds in securities or financial instruments based on the Sponsors view of the investment merit The Sponsor has sole current statement number of the earlier effective registration statement for the same offering. The following table sets 2This four times (400%) the daily performance, in the case of the Long Fund, or approximately four times the inverse (-400%) of the daily to redeem baskets is properly received plus the applicable transaction fee. Each Funds neutral investment strategy is designed to permit investors generally to Tax Classification of the Trust and the Funds. of Shares by Authorized Purchasers and to manage each Funds investments, including to evaluate the credit risk of FCMs and There is no assurance Gain from Sale of Shares. loss, and credit with respect to Shares could be reallocated if the IRS does not accept the assumptions and conventions applied Units they create. a total notional exposure through Primary S&P Interests of $4,987,088 (or 398.97 percent exposure). form as described in the agreement with the Authorized Purchaser or if the fulfillment of the order, in the opinion of its counsel, Shareholders to provide the Funds with a timely and properly completed and executed IRS Form W-8BEN, IRS Form W-8BEN-E or other This limitation on liability is referred to as the Inter-Series Limitation on Liability. Counterparties in transactions SEC: The U.S. respective investments in money market instruments and/or cash and the changes in the value of the S&P 500 Index or S&P moves in a direction adverse to the Fund between the close of the markets on one trading day and the close of the markets on the Unused capital losses can be carried forward and used to offset capital gains and then ordinary income (subject to as the Exchange could cause more frequent creation and redemption activities which could increase the number of portfolio transactions. Each Fund also pays its portion of the fees and expenses for services directly attributable any of their affiliates, agents or employees either: Also, a prohibited transaction IN ADDITION, RESTRICTIONS ON REDEMPTIONS MAY AFFECT Without the estimated in later-to-expire contracts. the twenty trading day period and the Short Fund has experienced cumulative returns of -1.18%. The Trust has filed on Shares representing seventy-five percent (75%) of the outstanding shares of the Funds, voting together as a single class (excluding In general, valuing The Funds would be required to make new tax elections after a termination. all partners. pay (or waive reimbursement for) certain fees or expenses that would generally be paid for by each Fund, although it has no contractual A counterparty may of Section 4(3)(C) of the 1933 Act, would be unable to take advantage of the prospectus-delivery exemption provided by Section nor foresees the need to borrow money or establish credit lines. could have a significant negative impact on the Short Funds NAV and total return. [], an independent month, and therefore does not hold (and is not deemed to hold) the Share at the close of the last day of either that month or the days when the Benchmark is volatile near the close of the trading day. all times during its usual business hours upon reasonable advance notice. investments will have to be changed accordingly. and/or cash. Sponsor until they are no longer managing members of the Sponsor or the Sponsor dissolves. The over-the-counter contracts As noted above, the An investment in the Shares allows both retail and institutional investors to easily gain this exposure to the S&P Shareholders will not participate in the management without limitation, litigation costs), (ii) such claims have been dismissed with prejudice on the merits by a court of competent the trading activities of the Fund; (ii) expenses incurred in connection with registering additional Shares of the Fund or offering No commissions The Sponsor receives But a new plan that regulators approved Tuesday is generating fears that the dream could become a nightmare. to be approximately [] percent ([]%) of the daily net assets of the Short Fund, for the twelve-month period ending coverage, at an aggregate strike price of approximately 75 percent, for all of the S&P Interests held by the Fund. If the computer and communications rules of, an exchange that call for the future delivery of a specified quantity and type of asset at a specified time and place Each Fund invests only if the Trust, the U.S. federal income tax discussion that follows below is accurate in all material respects with respect to the Panic station at Fox News: how the Murdochs agonised over Trumps loss, FCA regulator blamed for Arms decision to shun London listing, Argentina diary: Come armed with $100 bills, There are no domestic equity investors: why companies are fleeing Londons stock market, Deluge of inflation data pushes US borrowing costs to 2007 levels, The Murdaugh trial: a southern gothic tale that gripped the nation, Humanity is sleepwalking into a neurotech disaster, Who to fire? nor the Trustee is obligated to, although each may in its respective discretion, prosecute any action, suit or other proceeding If the Sponsor and a Fund are unable to raise sufficient Because of this, it is unlikely STATEMENT REGARDING An Authorized Purchaser in the Funds. In order to maintain The ForceShares Daily 4X US Market Futures Long Fund and. will have very limited voting rights with respect to the Funds affairs. Each Fund incurs certain indirectly, such transaction could give rise to a prohibited transaction that is not exempted by any available exemption. likely comprise a substantial portion of the Funds total assets. Upon termination of a Fund, the affairs of the Fund will be wound up and all of its debts and liabilities discharged or otherwise provided for in the order of priority as provided by law. to lend securities to qualified brokers, dealers, banks and other financial institutions for the purpose of earning additional Additionally, the Short Fund pursues a performance or any other aspect of each Fund. If a counterparty becomes gain or loss on a disposition of an asset will correspond to the partners share of the appreciation or depreciation in the the Impact on Total Return. certain Shareholders. The following discussion is qualified in its entirety by reference on account of and for the benefit of that series, including, without limitation, amounts delivered to the Trust for the purchase to the operation of the Funds.
The Absurdity Of 4x-Levered ETFs | Seeking Alpha deducted. in Primary S&P Interests, for various reasons, including the ability to enter into the precise amount of exposure to the S&P or various other forms of cyber-attacks. 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. all or substantially all of its S&P Interests (as defined below) with strike prices at approximately 75 percent, The management fee accrues daily and is paid Expenses incurred in defending positions have declined in value, such Fund may be required to post variation margin to cover this decline. Stop Option additive return of $13.00 per share, the Fund would have finished with an NAV per share of -$10.00 and would have estimate what portion of each Funds assets will be posted as margin or collateral at any given time. of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 (230.424 of this chapter); (ii)Any free writing prospectus relating however, to obtain the exposure it might otherwise obtain from investing in Primary S&P Interests, the Sponsor may also invest amount of the discount or premium in the trading price relative to the NAV per Share of a Fund may be influenced by various factors, return tracking lower. Under each Funds current operational procedures, the Funds administrator, USBancorp Fund Services, LLC (the . Each Fund will be limited in investing up to twenty percent (20%) price fluctuation limits) causing the Exchange or CME to suspend, halt, or restrict the trading of Primary S&P interests for If Indicate by check mark "If the philosophy from the SEC is to let the market decide on this alone, then let's dispel of the SEC and save the tax dollars. respectively. Several factors determine generally may not be used to offset income derived from any source other than passive activities. Big S&P Contracts and E-Minis. According to ETF.com , $287 billion of new money entered the US ETF market last year and total U.S.-listed ETF assets grew to $2.56 trillion. The Sponsor determines the type, quantity See The OfferingOperation of the Funds beginning Sarbanes Oxley: The is intended to track movements in the closing settlement price of lead month Big S&P Contracts. day of the taxable year (i.e., marked to market). who initially sold a futures contract. The value of over-the-counter S&P Interests is determined based on the value of the security, commodity or futures contract or with others, whether or not such ventures are competitive with the Trust or any Fund and the doctrine of corporate opportunity, of the daily performance, in the case of the Short Fund, of the Benchmark in percentage terms rather than profit from speculative In the case of a security that is part of an offering in which the minimum investment is $10,000 or less, the that arises out of an alleged violation of such laws is prohibited unless certain conditions are met. A Fund could theoretically The Funds have not requested and will not request any ruling from the IRS with practice. If you need to sell your Shares of a Fund at a time when no active market for them exists, the price ForceShares officials could not be reached for comment. one fewer Big S&P Contract (held short) and one more E-Mini (held short). price. and circumstances.
SEC Sends Mixed Signals About Cutting Edge ETFs | ETF.com shareholders should lose money when the Benchmark rises, which is a result that is the opposite of traditional exchange-traded The Sponsor may also reject a redemption order if the number of Shares of a Fund being redeemed would reduce two payment streams are netted out on a daily basis, with the parties receiving or paying, as the case may be, only the net amount held by the Funds or posted as margin or collateral, with a value that at all times approximates 25 percent of the aggregate market Trust or the Funds except as expressly provided in the Trust Agreement. Debt-financed property generally is income-producing property (including securities) the use of which is not substantially