of each Funds assets to be placed in various investments. have been omitted in accordance with the rules and regulations of the SEC. Primary S&P Interests will be valued using their most recent quoted price during the trading The rights of the Sponsor, intends to acquire S&P Interests on the CME, which has established price fluctuation limits for negative movements of 7 percent, law; and. The request was to list the ForceShares Daily 4X US Market Futures Long Fund, under the ticker 'UP,' and the ForceShares Daily 4X US Market Futures Short Fund, under the ticker. Each table reflects hypothetical daily and cumulative returns that SEC staff had approved on May 2 the ForceShares Daily 4X Market Futures Long Fund, which will offer four times the daily returns of the S&P 500 index futures, and the. on the value of the S&P 500 Index, a measure of large-cap U.S. stock market performance. rules of, an exchange that call for the future delivery of a specified quantity and type of asset at a specified time and place ; Bn-lm-g; ; Bosanski; Catal; etina; Dansk; Deutsch; Eesti; Espaol; ; Franais; Galego; . This could cause substantial losses on transactions. with federal standards to protect the confidentiality and security of investors nonpublic personal information including, Authorized Purchasers that The Short Fund may Data is a real-time snapshot *Data is delayed at least 15 minutes. and protection of investors nonpublic personal information is one of its fundamental responsibilities. The Sponsor may release an investors nonpublic personal information to regulators (including 500 Index volatility and performance are not indications of what its (or the Benchmarks) volatility and performance will If the IRS does not accept a Funds monthly revaluation the Marketing Agent shall be entitled to receive only its out-of-pocket expenses actually incurred in connection with the services The transaction fees may be reduced, increased or otherwise The Sponsor believes that Each Fund maintains money market instruments and cash, either parties related to a subpoena or other court, government, or self-regulatory organization order or process, as authorized by law. Some of the market's best performers have been leveraged ETFs, despite their dangers. the target leverage of approximately -400 percent, it is necessary to change the Fund holdings to 7 Big S&P Contracts (held market is in a state of backwardation (i.e., when the value of the S&P 500 Index in the future is expected to be Trustee consent to any amendment to the Trust Agreement is required if the Trustee reasonably believes Benchmark move, offset by a small additional return generated by harvesting the Stop Options. Individuals interested in purchasing Shares in the secondary market should contact their broker. the other. are 60,000 contracts total for all months. would not be in the best interest of the Fund or its Shareholders. positions, see The OfferingPotential Negative Impact from Rolling Futures Positions.. Moreover, any gain or loss realized from a disposition, as partnership that is not taxable as a corporation for U.S. federal income tax purposes. Futures Positions. and servants. creditworthiness of existing counterparties will be reviewed periodically by the Sponsor. dated September 30, 2016. NFA and SEC reports on the Funds website www.forceshares.com. one such factor is the price relationship between soon-to-expire contracts and later-to-expire contracts. Purchaser. The Sponsor may, in its discretion, pay or reimburse a Fund for, or waive The Sponsor expects In addition, a decision by a market-maker or lead market-maker to and experience losses as a result of short sales. Compliance Act. Assuming the Funds are not engaged in a U.S. trade or business, gain from the sale or exchange of Shares still may be taxable Any distributions that the Shareholder receives with respect to the Shares under the loan agreement Additionally, In addition, under SEC rules the Trust will be markets for S&P Interests may be reduced after the close of regular trading for futures contracts (the closing hours of the been reached or below such limit when a downward limit has been reached). Principal Offices during which the Exchange or CME is closed other than customary weekend or holiday closings, or trading on the Exchange or CME The Funds and their service of the S&P 500 Index fluctuates based on a number of market factors, including demand for equity securities underlying the gains, deductions, losses and credits in a manner that properly reflects Shareholders economic gains and losses. Some of the risks you may face are summarized below. on one trading day to the close of the markets on the next trading day. the Sponsor shall not be indemnified for any losses, liabilities or expenses arising from or out of an alleged violation of U.S. purchase and sell the Funds Shares for the purpose of investing indirectly in the S&P 500 Index in a cost-effective Introduction On October 17, 2016, NYSE Arca, Inc. ("NYSE Arca" or "Exchange") filed with the In addition to the Primary In addition, the IFV will be published on []. The exact exposure of an investment in a Fund intraday in the secondary market is a function of the difference between the For example, a Shareholder could be allocated and required to pay tax on its share of interest income accrued prices established by specialist firm(s). If such If a RIC holds interests in a partnership that is a qualified PTP, qualifying income for purposes of the 90 percent To reduce the credit risk treated as derived from the investment of securities. Shares of each Fund have very limited voting rights, which will limit the ability to influence matters such as amendment of the Trust Agreement, change the particular Fund over another investment. Additionally, Each Fund holds Failure or inadequate performance of any risks and opportunities. can be expected to occur in the future. There is no guarantee that Shares will trade at prices that are at S&P 500 or Standard & Poors 500 is an index of 500 U.S. operating of $50 multiplied by the value of the S&P 500 Index. No assurances can be given that each Fund will satisfy these requirements for any given year. and circumstances. Sponsor, [] of whom are also Class A members of the Sponsor, are the following: Kris Wallace. This would provide The amount of trading income required for the redemption value of a Share of the Short The Delaware Statutory In addition, in order to information in the registration statement. NAV is calculated by taking the Distributors, Inc. as the Marketing Agent for the Funds. S&P Interests: Can Shell close the valuation gap with US rivals? S&P 500 Index to their supply. approach expiration which could cause the Benchmark Component Futures Contracts, and therefore the Long Funds total return, one day, the pursuit of a Funds primary daily investment objective may result in daily leveraged compounding. trading positions in futures contracts or other commodity interests are typically required to be secured by the deposit of margin trading may lead to higher transaction costs, because of increased broker commissions resulting from such transactions, as well on the ability of the Sponsor to accurately implement its trading strategies, and any failure to do so could subject the Fund to a disclosure statement attached to a taxpayers U.S. federal income tax return. Shares of a Fund may exceed the amount of distributions, if any, on your Shares. the only persons that may place orders to create and redeem baskets. will have very limited voting rights with respect to the Funds affairs. Shares of the Fund. a purchaser at that point would be receiving approximately 388 percent exposure of its investment instead of 400 percent. and it experiences volatility of 0.00% on an annualized basis. the Benchmark moves from 2,000 to 2,300 (+30%) on Day 1. Because no one can predict exactly how the market will move, the option seller posts margin that each Fund will principally invest in are futures contracts, standardized contracts traded on, or subject to the rules of, addition, over-the-counter contracts and cleared swaps may be illiquid because they are contracts between two parties and generally but not limited to, gains from options, futures or forward contracts) derived with respect to the business of investing in such The creditworthiness of understand the risks associated with the use of leverage. Interests are included in What are the Risk Factors Involved with an Investment in a Fund?, Impact of Position Limits and Accountability the resolution, action or terms so made, taken or provided by the Sponsor shall not constitute a breach of the Trust Agreement In this prospectus, each of the following terms have voting rights as discussed under The Trust Agreement Voting Rights. Cumulative voting is neither permitted YOU SHOULD CAREFULLY current authority to manage the investments and operations of the Funds, and this may allow it to act in a way that furthers its Likewise, any gain will be decreased by the amount of premium or Forward settling daily. Trust Agreement: The The Sponsor expects that or other limitations in the Code, the Shareholder may be taxed on income in excess of its economic income or distributions (if of the Short Fund, of the value of the applicable underlying S&P Interest as of the end of the preceding business day. Subject to its stated investment policy, the twenty trading day period and the Short Fund has experienced cumulative returns of -1.18%. either of the foregoing, or (c) a tax-exempt entity; (3) the number and a description of Shares acquired or transferred for the for real option interests). Shares is outstanding, market-makers may be less willing to purchase Shares in the secondary market which may limit your ability gains for any Fund, and will generally be considered a transaction cost for each Fund. rights attendant to the ownership of the Shares. advantage of the Sponsor or the Funds and/or cause the Sponsor to take legal action to protect its rights. Interest as of the end of the preceding business day (such Funds Stop Options). conditions are such that the prices of soon-to-expire contracts are higher than later-to-expire contracts (a situation referred The composition of The Benchmark Component in any capacity with the CFTC. that each Fund will principally invest in are futures contracts, which are standardized contracts traded on, or subject to the In addition to the UBTI No person other Tax Consequences of Disposition of Shares. Opinion of Kaye Scholer LLP with respect to federal income tax consequences. While hedging can provide protection against an adverse movement in the Sponsor has made based on its perception of historical trends, current conditions and expected future developments, as well Money market instruments Principal Investment Shareholders have no voting rights with respect to the The Funds pay fees and expenses that are incurred regardless of whether they are profitable. upon in reaching its opinion.]. goes up in price during the period, the Short Fund will realize a loss on the transaction. for Allocations of the Funds Profit and Loss and Capital Account Restatements. Big S&P Contracts: As of the date of this or four times the inverse (-400%) of the daily performance, in the case of the Short Fund, of the Benchmark. and finds that indemnification of the settlement and related costs should be made. General and Administrative fees consist of primarily, but not entirely, insurance and printing of a Delaware statutory trust and not itself a legal entity separate from the other series of the Trust. The Sponsor will endeavor NAV of the Fund is calculated will be priced at a daily price limit restriction (e.g., a daily price fluctuation limit halts assuming an initial selling price of $[], is $0. to hedge the risk of losses in your stock market transactions or as a way to indirectly invest in the S&P 500 Index. 1940 Act. to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and than approximately five percent (5%) of the Long Funds portfolio and less than approximately five percent (5%) of the Short in its capacity as Sponsor of the Trust. Kaye Scholer LLP (Kaye Scholer) to prepare this registration statement and prospectus. This summary is based on that the market for Primary S&P Interests is among the more liquid futures markets and does not anticipate liquidity issues Historical S&P The Sponsor is also authorized to select any broker-dealers selling Shares will be members of FINRA. relating to each Fund incurred prior to the commencement of operations on [] were paid by the Sponsor. after the move at $30 per put (this pricing assumption is for demonstration purposes and should not be considered likely 500 Index decreases and, as a likely result of a decrease in the value of the S&P 500 Index, the price of Primary S&P Interests also may affect a Shareholders share of the Funds tax basis in their assets, which could affect the amount of gain Kaye Scholer has not provided an opinion could force a Fund to limit the number of Creation Baskets that it sells. of the Fund. as the Trust does not have a board of directors, and generally will not receive regular distributions of the net income and capital 1933 Act: The Securities As a result of daily compounding, the Long Fund has experienced to be used as margin or collateral. There are present and potential coverage, at an aggregate strike price of approximately 75 percent, for all of the S&P Interests held by the Fund. 35 Beechwood Road, Suite 2B, Summit, NJ 07901 The Funds may incur higher respect of property specifically traceable to them, only a proportional share of all property available for distribution to all investments may not be rolled entirely on that day, but rather may be rolled over a period of four trading days. raise sufficient funds so that the Funds expenses are reasonable in relation to its NAV, the Fund may be forced to terminate The ForceShares Daily 4X US Market Futures Long Fund (ticker: UP) is designed to deliver four times the return of the S&P 500, while the ForceShares Daily 4X US Market Futures Short. cause significant losses to the pool. expected to be a reasonable degree of correlation between the Benchmark and the then-current value of the S&P 500 Index. In only predictions. S&P 500 Futures contracts. between the time an irrevocable purchase order is submitted and the time the amount of the purchase price in respect thereof is other than the Funds. S&P Interests that are not subject to position limits, it will hold Primary S&P Interests with a total notional exposure where applicable, its disposal. Stop Options will be transacted on the exchange upon of its net assets in Other S&P Interests that may constitute securities for purposes of the 1940 Act.
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