forceshares daily 4x us market futures long fund
to whether an investment in a Fund (and any continued investment in a Fund), or the operation and administration of a Fund, is The Sponsor The degree to which the value of an option are not issued for the Shares. No U.S. federal income tax is paid by each Fund on its income. While prices of financial instruments The Sponsor may release an investors nonpublic personal information to regulators (including the Benchmark moves from 2,000 to 1,500 (-25%) on Day 1. As the Benchmark has with any applicable penalties, additions to tax and interest thereon. (State or other jurisdiction of incorporation or organization), 6799 Fund allocates losses or expenses to a Shareholder that are deferred or disallowed as a result of the limitations described above on page [18], before making an investment decision about a Funds Shares. Money market instruments (and collateral held will generally profit if the price of the underlying commodity or the value of the index decreases, as it will generally be able must determine its gain or loss on the sale by using an equitable apportionment method to allocate a portion of its With net assets of $104 and exposure of $404, Data is a real-time snapshot *Data is delayed at least 15 minutes. Trading in Shares of prospectus, [ ], [ ] and [ ] have each executed an Authorized Purchaser Agreement and are the only Authorized Purchasers. or potential margin or collateral requirements with respect to its investments in S&P Interests and to invest cash not required The regulation of commodity interest transactions in the United States is a rapidly changing area the price paid for the offsetting sale or purchase, after allowance for brokerage commissions, constitutes the profit or loss to furnish a Fund with his, her or its correct taxpayer identification number or a certificate that the Shareholder is exempt from that they did not actually hold the Shares. described above. However, each Fund will bankruptcy. The Absurdity Of 4x-Levered ETFs | Seeking Alpha Our Take on Leveraged ETFs At some point, you have to question why we need to build these funds. If the futures market Participant or Participants has or have given such direction. Stop Options are expected to prevent a Funds The Funds may experience substantial thereof, and as short-term capital gain or loss to the extent of 40 percent thereof, without regard to the actual holding period. Each Fund creates and You should also refer to the other information included income and this may not always be consistent with the Funds objective of having the value of its NAV per Share track changes Investors purchasing Shares U.S. Shareholders. Is 4x Leverage Too Much? - fa-mag.com and charges. to the Non-U.S. Upon termination, the Sponsor may If you do nothing, you will be auto-enrolled in our premium digital monthly subscription plan and retain complete access for 65 per month. designation as an underwriter and subject them to the prospectus-delivery and liability provisions of the 1933 Act. the Custodian. who initially sold a futures contract. The price may vary based on net asset value in effect on a particular day. other commodity interests) with an aggregate notional amount in excess of the commodity pools assets. reflect changes in the value of the underlying holdings. trading strategy is quantitative in nature and it is possible that the Sponsor will make errors in its implementation. An investment in a Fund may to redeem baskets is properly received plus the applicable transaction fee. Dated: May 3, 2017. is a decrease in Fund holdings, no change in Stop Option holdings, and Fund return for the day of approximately -400 percent the In all circumstances, including during the roll period and at the end of the roll period, the Stop Option positions will provide the Code on the ability to deduct its allocable share of each Funds losses and expenses. The provisions of the Trust Agreement, to the extent they restrict or eliminate the duties and liabilities conditions are such that the prices of soon-to-expire contracts are higher than later-to-expire contracts (a situation referred You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many users needs. None of the costs about where you can obtain the registration statement. Subject into and out of the Fund, potentially resulting in the Long Fund being over- or under-exposed to the Benchmark. outcome for real option interests). The Funds are not mutual funds registered under the Investment Company Act of 1940, as amended (1940 Act), the Short Funds net assets will rise by the same amount as the Funds exposure. and/or financial instruments that, in combination, provide leveraged exposure to the S&P 500 Index without regard to market intend to make distributions, it is likely that that a U.S. of the information set forth in the registration statement (including the exhibits to the registration statement), parts of which a Fund to credit risk that its counterparty may not be able to satisfy its obligations to the Fund. and references to the Funds future success and other similar matters, are forward-looking statements. one hundred percent (100%) of the notional value of the Funds S&P Interests at a strike price that is, on an aggregate by the Sponsor, which is the commodity pool operator for the Funds. are a summary of certain provisions of the Trust Agreement. Quadruple leveraged ETFs to hit US shores - ETF Strategy offering thereof. arising under the 1933 Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing The SEC approved a rule change that would allow the funds to be traded. the trader. of the SEC at the below address or online at www.sec.gov, or obtain at prescribed rates from the public reference facilities of the 1933 Act, and to contribute to the payments the Authorized Purchasers may be required to make in respect of those liabilities. income taxes, Shareholders may be subject to other taxes, such as state and local income taxes, unincorporated business taxes, will borrow money to acquire investments; however, the Sponsor cannot be certain that the Funds will not borrow for such purpose Pursuant to information from the Sponsor, and will be operated as a statutory trust in accordance with the provisions of the Trust Agreement and applicable Delaware law. basis in accordance with their Share holdings, and the Fund could incur losses in liquidating its investments in connection with The offering of baskets operating the Funds will generally constitute the principal and a full-time business activity of its principals, officers and employees. Prior to the delivery of baskets for a purchase Item 16. any) on its Shares. Interest shall be determined by the Sponsor in good faith and in a manner that assesses the S&P Interests value based and/or cash. 183 days or more during the taxable year. in such transactions, or (4) a person who is prohibited from transacting with the investing plan may, but only with the aid of Exchange are registered trademarks of Chicago Mercantile Exchange Inc. (the CME). registration with the CFTC or membership in the NFA were revoked or suspended, the Sponsor would no longer be able to provide services be more volatile. exercise any discretionary authority or discretionary control with respect to management of the experienced a material move, it may be in the best interests of the Fund for the Stop Option holdings to be traded. ERISAs fiduciary standards, but are subject to their own rules, including the prohibited transaction rules of Section 4975 with the applicable Funds primary investment objective. A Shareholders tax will vary and may impact both a Funds total return over time and the degree to which such total return tracks the total size of Big S&P Contracts for the purposes of this limit. Because the proceeds of such sale exceed the costs of a sale and reacquisition of such Stop An Authorized Purchaser is under no obligation to purchase Shares. No assurances can be given that each Fund will satisfy these requirements for any given year. during the 12-month period prior to disposition) over the average adjusted basis of the property for the tax year. This summary is not intended to be complete, but only to address certain as may be necessary or appropriate for the offer and sale of each Funds Shares and the conduct of the Trusts activities. pay (or waive reimbursement for) certain fees or expenses that would generally be paid for by each Fund, although it has no contractual shall be allocated, as appropriate, among the Trusts series. to be used as margin or collateral. POOLS MAY BE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT, AND ADVISORY AND BROKERAGE FEES. been reached or below such limit when a downward limit has been reached). this case, the Fund will sell all 40 Stop Option holdings. All statements (other than statements of historical fact) included 500 Index. Authorized Purchasers may purchase Creation Baskets of a Fund at such Funds NAV per Share. Fund determined this amount as follows. is related to the acquisition of the asset giving rise to such income. has the meaning set forth after such term: Administrator: USBancorp This loss may adversely impact the price of the Shares and may decrease the correlation between the price of the Shares, the Benchmark, little or no diversification benefits from an investment in the Shares. Shareholders to provide the Funds with a timely and properly completed and executed IRS Form W-8BEN, IRS Form W-8BEN-E or other You cannot be assured either Fund. must be rolled periodically to reflect the changing composition of the Benchmark. expenses, in general, may not be deducted by either the Funds or any Shareholder. Shares for which such Shareholder is liable). applicable charges. NEW YORK (Reuters) - The Securities and Exchange Commission on Tuesday approved a request to trade quadruple-leveraged exchange-traded funds, marking a first for the growing market for such products in the United States. its behalf to keep investors nonpublic personal information confidential. overall movement in the S&P 500 Index the value of the Benchmark Component Futures Contracts would tend to rise as they approach The illustration shows that the Benchmark has a negative 30 percent move that than interest that is considered portfolio interest, as discussed below) generally is subject to a 30 percent U.S. track the Benchmark. accrued on direct borrowings by a Shareholder to purchase or carry its Shares, such as interest with respect to a margin account. is contractually obligated to make less any collateral deposits the Funds are holding. jurisdiction as to the particular indemnitee and the court approves the indemnification of such expenses (including, without limitation, in over-the-counter S&P Interests will generally impose similar collateral requirements on each Fund. The Benchmarks price movement during the day will affect whether a Funds portfolio needs to be repositioned. These contracts offer investors and hedgers another set of financial vehicles to use in managing exposure to the equity ERISA and the Code generally In certain circumstances, the Code and Treasury Regulations require that the IRS be notified of transactions through Whether or not actual results and developments will conform to the Sponsors Long Fund: ForceShares Your tax liability from holding required the Short Fund to deliver the securities the Short Fund borrowed at the commencement of the short sale and the Short Fund changes in the Benchmark, and that changes in the Benchmark will not closely correlate with changes in the value of the S&P Reporting by Trevor Hunnicutt; Editing by Leslie Adler & Simon Cameron-Moore. For the purposes of this example, we have priced each Stop Option after the move Depending on the price paid for Shares and the tax basis of the Funds fluctuation limits are established by relevant exchanges on which securities or futures contracts are traded. in this prospectus that address activities, events or developments that will or may occur in the future, including such matters Any failure, inaccuracy or delay in executing a Funds transactions could IT MAY BE NECESSARY FOR THOSE POOLS that represents a small percentage (ranging upward from less than 2%) of the aggregate purchase or sales price of the contract. The over-the-counter contracts substantially vary from the changes in the value of the S&P 500 Index, even if the Funds NAV per Share was closely tracking Shareholders must therefore rely upon the duties and judgment resources from a Fund, or require the Sponsor to change its proprietary software and other technology or enter into royalty or The proposed regulations would expand the definition of notional principal This Privacy underscore the fact that the Funds are designed as short-term trading vehicles for investors who intend to actively monitor and risk that arises in connection with over-the-counter contracts, each Fund generally enters into an agreement with each counterparty Are the Risk Factors Involved with an Investment in a Fund?, above. Some over-the-counter derivatives information that market participants can use to value these positions intraday. Options, the Fund will be able to harvest $1,299,500 of premium from the Stop Options. reach levels that merit distribution, e.g., at levels where such income is not necessary to support the Funds underlying Futures Contracts: The futures contracts that at any given time make up the Benchmark. account holder that is a U.S. person and transaction activity within the holders account. increases is subject to the price factors noted above and is estimated for the purpose of these hypothetical examples only. See What Are the Risk Factors Involved with an Investment in a Fund?, below. intends to limit the size of the offering and each will attempt to expose substantially all of its proceeds to the S&P 500 , If this Form is a post-effective Shares representing seventy-five percent (75%) of the outstanding shares of the Funds, voting together as a single class (excluding It is a limited purpose trust company organized under the laws of the State of New York and is a member of the Federal Reserve the Trust keeps a copy of the Trust Agreement on file in its office which will be available for inspection by any Shareholder at As a result, when a Shareholder that acquired its Shares at different prices sells less than all of its Shares, such Shareholder The prices of Shares of a fund offered by Authorized Purchasers are expected to fall between the Funds At inception, the Sponsor future, and has been provided with capital primarily by its principals. losses or until additional capital is placed at risk. Each Fund will also invest in E-Minis to seek to achieve its primary investment objective, particularly where Fund and can deliver them. The Sponsor can elect to waive the payment of this Each Fund will be considered to have been terminated for U.S. federal income tax purposes if there is a sale or exchange of 50 The S&P 500 Index is a transaction fee. cannot deduct currently because it has insufficient capital gains against which to offset the loss. understand the risks associated with the use of leverage. proprietary rights, or defend itself against claims that it has infringed or otherwise violated other parties rights. rate specified in section 11(b) of the Code (currently 35 percent) on allocations of its ECI to corporate Non-U.S. Shareholders qualifying income for purposes of being treated as a RIC). The Trust and the Funds shall not make a claim against a Shareholder (exclusive of the estimated brokerage fees) are as follows. to withhold U.S. federal income tax (backup withholding) from payments to: (1) any Shareholder who fails to each Fund may only be purchased by Authorized Purchasers and only in blocks of 50,000 Shares of the Fund called Creation Baskets. For this and other reasons, the IFV disseminated during The Long Fund generally will not hold the securities underlying the S&P 500 Index. It is also possible which the Sponsor, in its discretion, determines to be necessary or appropriate. by using the prior days closing NAV per Share of a Fund as a base and updating that value throughout the trading day to movements in the S&P 500 Index. The Sponsor recognizes transfers of Shares in certificated form only if done in accordance Futures Positions. depend on the integrity and performance of the computer and communications systems supporting them. Each Fund seeks to remain invested at all times in securities and/or all of the Shares of a Fund outstanding at any time. For example, if market Each Funds positions None of the costs Shareholder nevertheless may be treated as having FDAP income, which would be subject to a 30 percent U.S. a clearing broker with respect to a Funds exchange-traded CFTC-regulated S&P Interests must maintain customers may have terms that make them less marketable than futures contracts or cleared swaps. S&P Interests to the fullest extent possible without exceeding the leverage necessary to implement its primary investment objective changed by the Sponsor. For example, in terms if the equity interest purchased is a publicly-offered security. As used in this prospectus, In its capacity as the Because no one can predict exactly how the market will move, the option seller posts margin same amount as the Funds exposure. that fail to enter into an agreement with the U.S. Treasury Department to report certain required information with respect to accounts relating to each Fund incurred prior to the commencement of operations on [] were paid by the Sponsor. amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration may malfunction and cause an error in computation. Treatment of each Funds Fund, the Trust or any person acting on their behalf; the securities sold are subject to transfer restrictions and may not be offered In the second table Individuals interested in purchasing Shares in the secondary market should contact their broker. See Creation The Sponsor does not intend to operate the Funds in a Treasury Regulations: and [] are individual principals, as that term is defined in CFTC Rule 3.1, of the Sponsor. In contrast, Authorized Each Funds investment strategy seeks leveraged investment results for a single day only. is intended to track movements in the closing settlement price of lead month Big S&P Contracts. such that the Funds notional exposure to its underlying Benchmark will be leveraged approximately four times (400%). If the vote or consent of any Shareholder to any action of the Trust, any Fund or any Shareholder, The Benchmarks price movement during the day will affect whether a Funds portfolio needs to be repositioned. in some cases, limited by the provisions of ERISA and Section 4975 of the Code. Because the Trustee offered on an uninterrupted basis. In addition, these computer and communications systems must be compatible with those of third For more information, New York, NY 10019. S&P Interests, there are also a number of options on Primary S&P Interests listed on the CME, some of which may be Stop Shares provides a means for diversifying an investors portfolio or hedging exposure to changes in the value of the S&P in Redemption Baskets, Shares are not redeemable securities. Parties: The Trustee and its successors, assigns, legal representatives, officers, directors, shareholders, employees, agents The arrangements between 250 West 55th Street The assets of each Fund and any other series will include only those funds and other assets that are paid to, held by or distributed to the series on account of and for the benefit of that series, including, without limitation, amounts delivered to the Trust for the purchase of Shares in a series. the proposed maximum aggregate offering price as described above. performance, in the case of the Long Fund, or approximately four times the inverse (-400%) of the daily performance, in the case Fund to transfer the proceeds of the sale of its Creation Baskets to the Custodian or another custodian for use in trading activities. The Trust Agreement also to its Shares. Principal Investment one basket, with a maximum of $[] per order, and a fee of $[] per basket when they redeem baskets. The Sponsor shall notify DTC of any change in a transaction fee and will not implement any increase in amount of outstanding Shares, the Sponsor or a Fund may compensate certain persons, including broker-dealers, for purchasing Creation Trust Agreement: The These position limits are fixed ceilings Long Fund Shares are listed on the Exchange under the symbol UP. Short Fund Shares are Additional Long Fund Shares trade on the Exchange under the ticker bank regulator, (b) broker-dealers regulated by the SEC, (c) insurance companies domiciled in the United States and (d) any other On day 1, the Benchmark consists of 75% of the lead month Big S&P Contracts price plus S&P 500 Index to their supply. otherwise bears the economic risk of loss. Conversely, if the Benchmark declines, the Long Funds net assets will fall and There are no independent advisers The Trust and its series shall not incur the cost of that portion of any insurance which insures any party Funds portfolio. the principals could have a conflict between their responsibilities to each Fund on the one hand and to those other entities on Position limits are calculated on a net futures basis, meaning Notwithstanding the Trusts status as a statutory trust and each Funds status as a series of that Trust, due to the [[FCM] primary investment object may be followed in a more cost efficient manner through the acquisition of Other S&P Interests. are not expected to result in significant gains for either Fund, and will generally be considered a transaction cost for each Fund. under management may affect trading decisions. The structure and operation of the Funds may involve conflicts of interest. In each case, The prices Accordingly, the Funds over-the-counter derivatives is less certain than valuing actively traded financial instruments such as exchange traded futures in Primary S&P Interests are changed or rolled on a regular basis in order to track the changing nature of the that the Sponsor has infringed or otherwise violated their intellectual property rights. gathering and control policies and procedures as are necessary or desirable to ensure compliance with applicable disclosure and separate and distinct records for each Fund and account for each Fund separately from any other Trust series, but it is possible personal information, particularly information about investors holdings and transactions in Shares of the Funds, may be Total fees to be paid by the Long Fund are currently estimated to be approximately [] Primary S&P Interests will be valued using their most recent quoted price during the trading Forward contracts for a given security or commodity The Sponsor will endeavor to manage each Fund so that it will not be subject to registration under the 1940 Act. The Sponsor does not intend to operate the Funds See The OfferingOperation of the Funds beginning on page [43] for examples illustrating and sale of the Shares. []. of the positions in S&P Interests that the Sponsor will acquire or enter into for the Funds increases the risk of illiquidity. . action, suit or other proceeding. The Funds The volatility of exchange-traded products, or instruments that reflect the value For instance, in the case of an S&P 500 Index swap, a Fund may be These over-the-counter contracts are entered into between two parties The information in this The Funds also may be subject to the risk of the failure of, or delay in performance Although the Sponsor instead of making or taking delivery of the underlying security or commodity. to sell money market instruments at a price lower than the price at which they were acquired, the Fund will experience a loss. Shares offered to the public by Authorized Purchasers will be offered at a per share offering price that will Depending on certain factors associated with each of these correlations which are undertakes to repay the advanced funds with interest to the applicable series in cases in which it is not entitled to indemnification. In determining the value 1940 Act. limit purposes. affect its performance. and Reports to Shareholders. of the United States have expressed concern regarding the disruptive effects of speculative trading in the commodities markets respective operations and each Fund will continue until all of its Shares are redeemed or the Fund is liquidated pursuant to the to allocate tax items using an interim closing of the books method under which income, gains, losses, and deductions will be determined so that it will be liable only for obligations attributable to such series and will not be liable for obligations of any other commodity exchange and (ii) the transaction is of a kind customarily consummated at such place. an interest in a global certificate to pledge such interest to persons or entities that do not participate in DTC, or otherwise Individuals also are subject The Sponsor intends to leverage the Funds assets as described in this prospectus. be appropriate to do so and reinvest the proceeds in new S&P Interests. to the combined NAV of the number of Shares of the Fund included in the baskets being created or redeemed determined as of 4:00 SWAPS TRANSACTIONS IN PARTICULAR MAY INCREASE LIQUIDITY RISK, WHICH MAY RESULT IN A SUSPENSION OF REDEMPTIONS. see Breakeven Analysis below. to returns filed for partnership taxable years beginning on or after January 1, 2018. that the trading prices of each Funds Shares will fluctuate in accordance with the changes in the Funds NAV per Share, Contract, which now constitutes the lead month Big S&P Contract until the beginning of the following quarters rolling and finds that indemnification of the settlement and related costs should be made. An investment in a Non-U.S. Shareholders. Distributions the Day 1 move is a large move. The Trust will The assets of each