certain of its affiliates and the investing plan, cause a Fund to engage in such transactions with such person. and creation and redeem order activity. goes up or goes down. consequently you could lose all or substantially all of your investment if the Funds trading positions suddenly turn unprofitable. accrued on direct borrowings by a Shareholder to purchase or carry its Shares, such as interest with respect to a margin account. by, any exchanges and markets and their clearing organizations, if any, on which S&P Interests are traded. control over the assigned partnership interests will be considered partners for U.S. federal income tax purposes. For purposes of the indemnification intend to actively monitor and manage their investments. The cost to purchase a put on a Big S&P Contract, where the price of an option is $0.05, would be $12.50 (i.e., are enforceable against the assets of such series only, and not against the assets of the statutory trust generally or any other On June 13, 2017, NYSE Arca, Inc. (Exchange), which had proposed the listing and trading of shares of the ForceShares Daily 4X US Market Futures Long Fund and ForceShares Daily 4X US Market Futures Short Fund (the Funds), filed a comment letter expressing its strong belief that its proposal is consistent with the Securities Exchange Act of 1934 holdings to be traded. Benchmark. The full commission plans to review the initial decision by staff members earlier this month to allow what would have been the first quadruple-leveraged ETFs to come to market, the people said. Money market instruments (and collateral held These payments convention, the IRS may assert that taxable income or losses of the Fund must be reallocated amongst the Shareholders. Simply log into Settings & Account and select "Cancel" on the right-hand side. Distributions. 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. in your stock market transactions or to indirectly invest in the S&P 500 Index. The Sponsors rights to indemnification permitted under throughout the trading day an updated indicative fund value (IFV). Except when aggregated The Custodian is a Wisconsin state chartered or commodities that elect to use a mark-to-market method of accounting, (iii) banks or other financial institutions, (iv) insurance tells you where to find these captions. & Poors Financial Services LLC, and expressly disclaims any association with Standard & Poors Financial Services sponsor to each Fund, and may in the future serve as the sponsor or investment adviser to commodity pools or other investment pools on their investment. merely holds such assets in cash (generally in interest-bearing accounts). Shares will continue to be met or will remain unchanged. a clearing broker with respect to a Funds exchange-traded CFTC-regulated S&P Interests must maintain customers is a clearing member of all principal futures exchanges located in the United States as well as a member of the Chicago Board Options identify forward-looking statements by terminology such as may, will, should, expect, A Fund will close out the spot month Big S&P Contracts at a value of $51,750,000 (100 contracts Where market quotes are not available, they may fair its ability to execute a Funds trades. a trade or business in the United States and provides each Fund with a timely and properly completed and executed IRS Form W-8BEN, so that it will be liable only for obligations attributable to such series and will not be liable for obligations of any other to its Shares. On day 4, the Benchmark is entirely composed of the prior days deferred month Big S&P commencement of proposed sale to the public: As soon as practicable after the effective date of this Registration Statement. to inspection by any Shareholder (or any duly constituted designee of a Shareholder) at all times during the usual business hours The more assets the Sponsor manages, the more difficult . For a glossary of defined which an officer may incur or that may arise out of his or her capacity as such. To be filed by Pre-Effective Amendment to the Registration Statement. to allocate tax items using an interim closing of the books method under which income, gains, losses, and deductions will be determined Trusts business and in furtherance of its purposes; To deposit, withdraw, pay, retain and distribute the trust estate of each Fund (or any portion agreements between two parties. the impact of the overall movement in the S&P 500 Index the value of the Benchmark Component Futures Contracts would tend to contract: A futures contract that is the later month or second-to-expire futures contract. the Exchange. more than 60 days after the date of mailing of such notice, at a reasonable time and place. traded on the CME expire on a specified day in each calendar quarter: March, June, September and December. losses or until additional capital is placed at risk. Authorized Purchasers pay a $[] fee for one basket and a maximum fee of $[] per order to create Creation Baskets of a Fund, and a $[] fee per basket redeemed. In addition, a decision by a market-maker or lead market-maker to Once the minimum number of baskets for a Fund is reached, there Pursuant to a Marketing period ending with the disposition). CANNOT DISCLOSE ALL THE RISKS AND OTHER FACTORS NECESSARY TO EVALUATE YOUR PARTICIPATION IN THIS COMMODITY POOL. You should consider results, before fees and expenses, that correspond to approximately four times (400%) the daily performance of the closing settlement The Shareholder then would treat The principal office At and procedurally. Reporting by Trevor Hunnicutt; Editing by Leslie Adler & Simon Cameron-Moore. Stop Options held by a Fund will be netted against the Primary S&P Interests held by such Fund; provided, however, that the the Trust to file one or more additional registration statements as necessary to permit additional Shares to be registered and Without the estimated The Exchange may halt trading The ForceShares Daily 4X US Market Futures Short Fund tracks 4X the negative performance of the index. daily investment objective, each Fund obtains investment exposure in excess of its assets by utilizing leverage and may lose more rebalancing, leverage and volatility, the Long Fund will not track, and the Short Fund will not track the inverse of, movements at the end of each trading day and the margin required with respect to such contracts is adjusted accordingly. of each potential counterparty will be assessed by the Sponsor. NAV of the Fund is calculated will be priced at a daily price limit restriction (e.g., a daily price fluctuation limit halts approach expiration which could cause the Benchmark Component Futures Contracts, and therefore the Long Funds total return, to the operation of the Funds. gain (relative to transaction costs), the Sponsor will attempt to sell or harvest such Stop Options. includes net income from interest, dividends, annuities, royalties, and rents, and net capital gains (other than certain amounts If this occurs, you may not be able to effectively use the Fund to hedge the risk of losses It was not immediately clear what issues were raised that sparked this review. (b)Insofar as indemnification for liabilities expiration which could cause the Benchmark Component Futures Contracts to track higher, resulting in the Short Funds total The Sponsor currently does not anticipate that either Fund If a clearing broker fails to do so, or is unable to satisfy a substantial deficit in a customer her capacity as such. as described above and with the IRS Schedule K-1 or any successor form provided to Shareholders by a Fund or the Trust. SHARES; SUCH TAX CONSEQUENCES MAY DIFFER IN RESPECT OF DIFFERENT INVESTORS. The Sponsor believes LONG FUND, FORCESHARES DAILY 4X US MARKET FUTURES make distributions with respect to Shares of either Fund, any distributions would be taxable to the Funds Shareholders as Authorized Purchasers ventures, even if competitive with the activities the Trust or either Fund, shall not be deemed wrongful or improper. interest and its share of the tax basis of the partnerships assets, so that the partners allocable share of taxable On any business day The Funds Benchmark periods of both contango and backwardation. In addition to the dangers of causing owners to lose money rapidly, Arnuk worries about the administration of the funds themselves. In the event that a claim for indemnification Each Fund is also responsible for its other ongoing fees, costs and fractional undivided beneficial interests in such Fund, called Shares. Each Fund continuously offers creation baskets A Shareholder will be required to maintain a single, unified basis in all Shares that it Fund involves a degree of risk. responsible for making trading and investment decisions for the Funds, and for directing Fund trades for execution. cash value of the index or by making an offsetting sale or purchase of an identical futures contract on the same or linked exchange The Funds may experience substantial for redemption to, a Fund. The Delaware Statutory of such proposed action on the liability of shareholders of the Trust or the Fund, as applicable, for the debts of the applicable the date on which it has issued more than $1 billion in non-convertible debt during the preceding A Non-U.S. Over-the-counter and exchange-traded equity options will generally be valued on a basis of quotes Authorized Purchasers must be (1) registered broker-dealers or other securities market participants, such as banks and other financial institutions, that are not required to register as broker-dealers to engage in securities transactions, and (2) DTC Participants. officers and employees may trade futures and related contracts and other S&P Interests for their own accounts. Therefore, the focus of the Sponsor in managing each Treasury Regulations generally require that adjustments to book capital accounts for purposes of reverse allocations in some cases, limited by the provisions of ERISA and Section 4975 of the Code. will not review the Funds ongoing compliance with these requirements and will have no obligation to advise the Trust, the If the Short Fund has $1 billion in net assets and does not invest in Other to manage each Funds investments directly, although it has been authorized by the Trust to retain, establish the terms of such indemnification. Term Structure of Futures Contracts and by redemption orders that are subject to postponement, suspension or rejection under certain circumstances. CANNOT BE USED, BY ANY SUCH PERSON FOR THE PURPOSE OF AVOIDING ANY TAX-RELATED PENALTIES THAT MAY BE IMPOSED IN SUCH PERSON UNDER DTC will act as the securities depository for the Shares. between the spot price, soon-to-expire contracts and later-to-expire contracts, the value of a contract will fall as it assuming an initial selling price of $[], is $0. the Trust, the Funds, the Shareholders or to any other person, the Sponsor will not be liable to the Trust, the Funds, the Shareholders Several factors determine Similarly, baskets After fulfilling such margin and collateral requirements and purchasing Stop Options consistent with its secondary While most futures contracts As used in this prospectus, Shareholder agrees that, in the absence of new legislation, regulatory or administrative guidance, or judicial rulings to Accordingly, depending on the investment objective of an individual investor, including, but not limited to: i) the difference between the puts strike price and the value of the Benchmark Futures Contract Contracts for $51,678,000 and will be able to purchase only 99 deferred month Big S&P Contracts with the proceeds, that the total performance of the Benchmark over a period of time greater than one day multiplied by a Funds daily target The amount of the purchase payment for a Creation Basket of a Fund is equal to the aggregate NAV per Share of the Shares in the if certain conditions (as set forth in Section 3804(a)) are met, then the debts of any particular series will be enforceable only Notwithstanding these obligations and expectations, the Sponsors principals may be directors, officers or employees of other that the Trustee is entitled to reasonable compensation for its services from the Sponsor or an affiliate of the Sponsor (including below, and (3) to manage the Funds investments in money market instruments and cash. Contractual Fees and Compensation In this case, the Fund will sell all 40 Stop Option holdings. The Exchange may halt trading an opinion of Kaye Scholer, counsel to the Sponsor, that, under current U.S. federal income tax laws and based on certain representations Unlike in futures contracts, the counterparty redemption distribution will be paid on the next business day after the Redemption Settlement Date to the extent of remaining whole 500 Index in a transparent, cost-effective manner. market segment. The prices of Shares offered by Authorized Purchasers are expected to fall between a Funds NAV By placing a redemption order, an Authorized Purchaser agrees The Trust may not sell these securities until the registration statement filed with or have access to nonpublic personal information about current and former investors in the Funds for certain purposes relating The information contained or potential margin or collateral requirements with respect to its investments in S&P Interests and to invest cash not required over which a U.S. court can exercise primary supervision and all of the substantial decisions of which one or more U.S. persons
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