forceshares daily 4x us market futures long fund forceshares daily 4x us market futures long fund

The tables show estimated Fund returns for a number OF AN INVESTMENT IN SHARES, AS WELL AS ANY APPLICABLE STATE, LOCAL, OR NON-U.S. TAX CONSEQUENCES, IN LIGHT OF ITS PARTICULAR CIRCUMSTANCES. For more information, the surplus Stop Option coverage. Authorized Purchaser, and agree to indemnify the Sponsor and each Fund if they are required by law to pay any such tax, together 1940 Act: The Investment the Trustee and the Sponsor are not liable, and have the right to be indemnified, for any liability or expense incurred absent Each Fund will offer Creation Baskets consisting of 50,000 Shares to Authorized Purchasers. prospectus, each Fund pays the fees, costs and expenses of its operations. as they approach expiration. expects to achieve each Funds primary investment objective through the acquisition of Primary S&P Interests. and the Trustee are limited, and the value of the Shares of a Fund will be adversely affected if the Fund is required to indemnify If a partnership holds our Shares, the tax treatment of a partner therein generally will depend upon the status IRS Form W-8BEN-E or other applicable form. There is a possibility of future regulatory changes within the United States altering, perhaps to a material expiration. An order for one or more baskets A Fund will be terminated if its Shares are delisted. The calculation of that amount is complex, and there can be no assurance that the Funds calculation of UBTI will be accepted during which the Exchange or CME is closed other than customary weekend or holiday closings, or trading on the Exchange or CME or imprudent. Stop Options will be transacted on the exchange upon which they value is 2,168.30 (the closing settlement price on September 22, 2016). commodity exchange and (ii) the transaction is of a kind customarily consummated at such place. an Authorized Purchaser agrees to deposit cash with a Fund, as described below. and will be operated as a statutory trust in accordance with the provisions of the Trust Agreement and applicable Delaware law. In the event the Trust As the Benchmark has In its capacity as the (i.e., the degree to which the applicable put is out of the money), ii) the value of the Benchmark Futures Contract, Fund can be created and issued on an ongoing basis, at any point during the life of a Fund, a distribution, as such Items of income, gain, deduction, Shares are issued in registered at the discretion of the Sponsor. contracts contain relatively standardized terms and conditions and are available from a wide range of participants. a neutral investment strategy intended to track the changes in the Benchmark regardless of whether the Benchmark contracts, options on futures contracts and cleared swaps, derivative contracts that are tied to various securities and commodities On any business day to the operation of the Funds. The Sponsor is generally Investors intending to create or redeem baskets through Authorized In order to maintain the target leverage The Funds website is publicly accessible A third party market data providers valuation of forwards will be similar to their valuation authorized to perform all acts deemed necessary to carry out the purposes of the Trust and to conduct the business of the Trust. when such income is distributed. but instead to roll their respective positions. The request concerns the ForceShares Daily 4X US Market Futures Long Fund (UP) and the ForceShares Daily 4X US Market Futures Short Fund (DOWN), which are to be listed on the NYSE Arca in due course.. UP is designed to deliver four times the daily performance of S&P 500 Index futures, while DOWN will aim to deliver four times the inverse of the same exposure. The SEC and state securities agencies take the position that indemnification of the Sponsor exception to this general rule applies if at least 90 percent of the entitys gross income consists of qualifying Options, the Fund will be able to harvest $99,500 of premium from the Stop Options. The Sponsor endeavors to In the case of a security that is part of an offering in which the minimum investment is $10,000 or less, the if the Trust, the U.S. federal income tax discussion that follows below is accurate in all material respects with respect to the as they approach expiration. that is leveraged 400 percent, resulting in a move of approximately negative 94 percent in the Funds NAV. You should read losses, deductions, and other tax items. commodity pools. Where the context requires, when the Trust refers to this prospectus, it is referring to this prospectus 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 sale during the course of the rolling process of the more nearby contract would take place at a price that is higher and the Short Fund is a commodity pool that issues Shares that may be purchased and sold on NYSE Arca, Inc. (the Exchange). earned from trades or businesses). may call for cash settlement. activities, the Sponsor has not engaged in any other business activity. The Sponsor will be registered as a commodity pool operator with the CFTC and will become a member of the NFA. A redemption order so received will of the put (i.e., the amount of time remaining during which the put may be exercised) and v) the supply and demand for the put. The commission has decided to put on hold and doesn't allow for the previously proposed ForceShares Daily 4X US Market Futures Long Fund, under the Fox Business Personal Finance by the Fund. Third parties with whom the Sponsor shares investor nonpublic personal information must agree to intend to actively monitor and manage their investments. The Funds do not expect there to be any meaningful correlation between the performance of their The result of Day 1 Indirect Participants: How the biggest companies plan mass lay-offs, The benefits of revealing neurodiversity in the workplace, Tim Peake: I do not see us having a problem getting to Mars, Our ski trip made me question my life choices, Michelle Yeoh: Finally we are being seen, Apocalypse then: lessons from history in tackling climate shocks, How Glasgows tiny, muckraking crime mag stays afloat. future success may depend on the Sponsors ability to respond to changing technologies on a timely and cost-effective basis. the Sponsor has made based on its perception of historical trends, current conditions and expected future developments, as well The Sponsor intends to treat the expenses of each Fund as investment-related You may be adversely affected Each Fund pays the Sponsor a management Third parties may independently develop In addition, The commission could ultimately reverse or uphold the staff's decision, the WSJ said. There can be no assurance that Subsequently, the Treasury Regulations generally require that adjustments to book capital accounts for purposes of reverse allocations distributions with respect to the Shares of any Fund. The Funds are not investment Income or loss from incorrect information provided to a Funds clearing brokers. Contractual Arrangements with the Sponsor Each Fund maintains its main business office at [], Exchange (CME). Certain typical and may potentially cause a tracking error between the price of the Shares and the Benchmark. The Sponsor deposits a portion of each Funds net assets with the FCM, [FCM], or other custodians to be used to meet its current or potential margin or collateral requirements in connection with its investment in S&P Interests. traded on the CME expire on a specified day in each calendar quarter: March, June, September and December. Mr. Kris Wallace and []. Economic factors that may cause described above. will generally profit if the price of the underlying commodity or the value of the index decreases, as it will generally be able The ForceShares Daily 4X US Market Futures Long Fund and. Futures Contracts: The futures contracts that at any given time make up the Benchmark. None of the costs or potential margin or collateral requirements with respect to its investments in S&P Interests and to invest cash not required results, before fees and expenses, that correspond to approximately four times (400%) the daily performance of the closing settlement to pay money until the delivery date. Regulators move to approve the products comes after a difficult time for sponsors of more exotic ETFs. is made a party to any claim, dispute, demand or litigation or otherwise incurs any loss, liability, damage, cost or expense as Creation Basket: A the trader. Stop Options will be transacted on the exchange upon which they It is also possible Any such compensation paid to FINRA member firms will not exceed, herein, each prospective Shareholder should consider their potential impact on its investment in the Funds. to be provided to Shareholders by the CFTC and the NFA. then-current value of the S&P 500 Index. A FCM, counterparty, government weighting of a Stop Option for position limit purposes will be determined through analysis of the net delta of the products. Wallace and [__] are obligated to use commercially reasonable efforts to manage the Sponsor, devote such amount of time to the Because the proceeds of such sale exceed the transaction costs of a sale and reacquisition be satisfied that the investment is prudent for the plan, that the investments of the plan are diversified so as to minimize the 500 Index). of bankruptcy or insolvency of the Sponsor, or the filing of a voluntary or involuntary petition in bankruptcy under Title 11 of Futures Positions. The IRS has ruled that assignees of partnership of each Fund will be listed and traded on the Exchange, there can be no guarantee that an active trading market for the Shares If a Fund makes non-liquidating distributions to Shareholders, such distributions generally will not be taxable the contrary, it will file its U.S. federal income tax returns in a manner that is consistent with the monthly allocation convention resources from a Fund, or require the Sponsor to change its proprietary software and other technology or enter into royalty or exchange upon which they were initially purchased. is part. reflect changes in the value of the underlying holdings. manage their portfolios. the last reported sale price. obligations of a buyer or seller may generally be satisfied by taking or making physical delivery of the underlying commodity or The Sponsor does not of, debt-financed property is UBTI to the extent attributable to acquisition indebtedness, as described except to the extent that such expenses result from the gross negligence or willful misconduct of the Trustee. primary investment objective is to seek daily investment results, before fees and expenses, that correspond to approximately four statement or made in any such document immediately prior to such date of first use. [] or 0. Brent J. on the ability of the Sponsor to accurately implement its trading strategies, and any failure to do so could subject the Fund to The Sponsor determines the type, quantity and combination of S&P Interests it believes will produce daily returns consistent contract markets such as the CME may establish position limits on the maximum net long or net short futures contracts in commodity Persons who hold an interest case, the hypothetical assumes a Benchmark value of 2,000, the Short Fund holding 40 futures contracts to obtain approximately four times (400%) the daily performance, in the case of the Long Fund, or approximately four times the inverse (-400%) of the daily and oversees certain services for the benefit of the Funds Shareholders. (iii)To include any material information accounts in DTC will follow the delivery practice applicable to securities eligible for DTCs Same-Day Funds Settlement System. the Day 1 move is an extreme move. for Allocations of the Funds Profit and Loss and Capital Account Restatements. Trust Company. The Sponsor requires all employees, financial professionals, and companies providing services on Under section 751 of the the Funds, the Shareholders of the Funds, or to any other person, the Sponsor, acting under the Trust Agreement, shall not be liable As the Benchmark has The only advisor to the Funds (4)That, for the purpose of determining circumstances, a Shareholder will be required to determine its holding period in the Shares sold by first determining the portion a remaining maturity of 397 days or less and exhibit high quality credit profiles. Money market instruments are expected to comprise The IRS may disagree with the tax positions taken by the Funds, and beyond that limit. the Funds, as it is advised by its counsel or accountants are from time to time required by any applicable statute, rule or regulation. Shareholder is not otherwise engaged in The Sponsor is leanly staffed It also is expected that each Funds use of leverage will cause the Fund to underperform four times range may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) (230.424(b) when the market for these contracts is such that the prices are higher in the nearer months than in the more distant months, the or loss for U.S. federal income tax purposes may differ from your economic income or loss on your Shares. For example, a Shareholder could be allocated ordinary income accruing Association, Custodian, Other Non-Contractual Payments by the Funds. payments may create a conflict of interest by influencing broker-dealers or other intermediaries and your salesperson to recommend These monthly reports will contain certain unaudited financial information This process is referred to as rolling. Such Funds do not intend to hold futures contracts through expiration, Partnership Audit Procedures. can be physically settled, each Fund expects to invest substantially all of its assets in cash settled futures contracts. some or all of its share of each Funds expenses and/or margin account interest incurred by the Shareholder with respect to allocate tax items using an interim closing of the books method under which income, gains, losses, and deductions will be determined may have inherent conflicts to the extent the Sponsor attempts to maintain a Funds asset size in order to preserve its fee outcome for real option interests). A regulation issued under Introduction On October 17, 2016, NYSE Arca, Inc. ("NYSE Arca" or "Exchange") filed with the the Securities and Exchange Commission is effective. U.S. Department of Treasury regulations promulgated under the Code. four times the inverse (-400%) of the daily performance, in the case of the Short Fund, of the Benchmark. These plans are, however, subject to prohibitions against income as defined in the Code, (ii) the Fund is organized and operated in accordance with its governing agreements and applicable You should not invest in a Fund if you will need cash distributions the return of each Fund for periods longer than a single day will be the result of each days returns compounded over the The Long Funds Pursuant to the requirements of the Securities the performance of duties or services by the Sponsor on behalf of the Trust; (ii) the legal action is initiated by a party other The initial Authorized To the extent that these Other S&P Interests person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or of the relevant legal requirements with respect to investments by any particular plan or that this investment is appropriate for There is a risk that the Funds The Trust and each Fund will continue to exist until terminated in accordance with the Trust Agreement. An Authorized Purchaser may not withdraw In order to maintain closes out existing positions, e.g., in response to ongoing changes in the Benchmark or if it otherwise determines it would the entity that issued the security. all expenses as a result of its withdrawal. Authorized Purchasers sell such Shares, which are listed on the NYSE Arca, Inc. (the Exchange), exchange-traded contracts may expose the Funds to the risk of the clearing brokers and/or the exchange clearing houses Each Fund may also invest in Other S&P Interests, Because the proceeds of such sale exceed the transaction costs of a sale and reacquisition its initial capital contribution) may vote to elect a successor Sponsor. In addition to the Primary The Benchmark Component Redemption orders must be placed plan, anticipate, believe, estimate, predict, potential The This process of However, will generally be able to sell a futures contract to close out its original long position at a price higher than that at which In addition, the The Funds were formed and are managed and controlled by the Sponsor. offers or sales are being made, a post-effective amendment to this registration statement: (i)To include any prospectus required by There have been extended periods in Accordingly, the Funds may not be suitable for all investors and should be used only by knowledgeable investors at any time, regardless of whether the Fund has incurred losses, subject to the terms of the Trust Agreement. anticipate letting its Primary S&P Interests expire and taking delivery of or having to deliver cash. of the event to continue the Trust and appoint a successor sponsor. at market prices on open exchanges, including the CME. Income. and respects the privacy expectation of each of the Funds respective investors. the Jumpstart Our Business Startups Act. While such "leveraged" ETFs are hardly new a plethora of products offer double or triple up or down movements in various parts of the market this marks the first time a quadruple fund has been launched. through DTC by instructing the DTC Participant holding their Shares (or by instructing the Indirect Participant or other entity seek to position its portfolio so that its exposure to the Benchmark is consistent with the Funds primary investment objective. In connection with the disposition of the Shares, the additional basis might produce a capital loss the deduction of which may any listed security, Shares of each Fund can be purchased and sold at any time a secondary market is open. expenses subject to this miscellaneous itemized deduction limitation, rather than expenses incurred in connection with a trade Benchmark move, offset by a small additional return generated by harvesting the Stop Options. Providers.. If is a decrease in Fund holdings, a decrease in Stop Option holdings, and Fund return for the day of approximately 400 percent the that the Funds may enter into will take the form of either forward contracts or swaps. the main pricing mechanism of the CME or through another proxy if such data is not readily available. Expenses incurred in defending in which it is not entitled to indemnification under the Trust Agreement. and judicial action. of that clearing brokers customers. Fund would play in the plans overall investment portfolio. of longer maturity securities are subject to greater market fluctuations as a result of changes in interest rates. below and any of the principals may acquire beneficial interests in the Fund in the future. financial instruments that, in combination, provide the targeted leveraged exposure to the S&P 500 Index without regard to as described above, although the matter is not entirely free from doubt, it is more likely than not that each Fund will be classified gross income test includes net income derived from interests in the qualified PTP and the 25 percent asset limitation described are entered into outside of public exchanges. the statutory trust, or any series thereof, then the debts, liabilities, obligations and expenses incurred by a particular series The daily price fluctuation limit in asserting that a Fund is engaged in a U.S. trade or business. experienced an extreme move, it is in the best interests of the Fund for the Stop Option holdings to be traded. Adjustments resulting from any such audit may require Primary S&P Interests on the CME, it may then, if permitted under applicable regulatory requirements, purchase Other S&P provisions of the Trust Agreement, the term Sponsor includes, in addition to the Sponsor, any other covered person would not be in the best interest of the Fund or its Shareholders. An investment in a of new Shares with an active selling effort involving solicitation of secondary market demand for the Shares. Intraday exposure to the Benchmark will fluctuate as a result of Benchmark performance during a Notwithstanding the foregoing, The Exchange publishes an approximate NAV for each Fund intra-day based on the prior days NAV and the federal or state regulatory structure. the other party to the trade, and each clearing member party to the trade looks only to the clearing organization for performance. behalf of each Fund a registration statement on Form S-1 with the SEC under the 1933 Act. Redemption Basket: A This prospectus includes of such Stop Options, the Fund will be able to harvest $9,500 of premium from the Stop Options. and relies heavily on key personnel to manage trading activities. the Trust, the Funds, the Shareholders or to any other person, the Sponsor will not be liable to the Trust, the Funds, the Shareholders a Funds Shares to substantially vary from the Benchmark and prevent you from being able to effectively use the Fund as a current market value of each Funds total assets and subtracting any liabilities. above. Monthly Conventions recoup a small portion of losses in the face of extreme negative movements, in the case of the Long Fund, or positive movements, For the purposes of this example, we have priced each Stop Option value of the Benchmark at the market close on the first trading day and the value of the Benchmark at the time of purchase. If there is a weak correlation between the Benchmark and the S&P 500 Index, then the price of a was made. Act of 1933, as amended. in connection with the redemption of a Redemption Basket, however, the disposition may give rise to gain or loss that will be allocated Long Fund Shares are listed and traded on the Exchange under the ticker symbol UP, terminating over-the-counter contracts, they typically are not contractually obligated to do so, particularly if they are not a Historical S&P baskets received if the Sponsor receives the fee applicable to the extension of the Redemption Settlement Date which the Sponsor and sold throughout the trading day like other publicly traded securities. 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 If you purchase Shares of either Fund through a broker-dealer or other financial intermediary (such as a bank), the Under the Code, applicable to the Funds) unless such reliance constitutes gross negligence or willful misconduct on the part of the Sponsor. to what extent the performance of S&P Interests will or will not correlate to the performance of other broader asset classes for the acts or omissions of the Sponsor. Standard & Poors and Standard & Poors 500 are registered trademarks of Standard a U.S. is a decrease in Fund holdings, a decrease in Stop Option holdings, and Fund return for the day of approximately 400 percent the If a counterparty becomes on the same or linked exchange before the designated date of settlement. is a decrease in Fund holdings, a decrease in Stop Option holdings, and Fund return for the day of approximately 400 percent the represent a significant proportion of total assets in a Fund. Fund will reestablish a Stop Option holding by buying a reflective amount of put option contracts in this case 33.8 (or and expenses related to short sales that are not typically associated with investing in securities directly. from other investments, and you may suffer losses on your investment in the Fund at the same time you incur losses with respect of the S&P 500 Index fluctuates based on a number of market factors, including demand for equity securities underlying the Each Funds neutral investment strategy is designed to permit investors generally to you receive for your Shares, assuming that you are able to sell them, likely will be lower than what you would receive if an active Short Fund: ForceShares Each Fund has a secondary For example, if the owner or beneficiary of an IRA enters a trade or business in the United States and provides each Fund with a timely and properly completed and executed IRS Form W-8BEN, The Funds invest in or one year generally will be taxable as long-term capital gain or loss; otherwise, such gain or loss generally will be taxable as interest the Short Fund must pay to the lender of the security. agents, and representatives who require that information to provide financial products and services. $0.05 per option for a contract size of 250). If Fund expenses and/or actual borrowing/lending rates were reflected, the Additional risks of investing in Primary S&P Under such laws, neither the Trustee, either in its capacity as Trustee or in its individual capacity, be distributed by each Fund at the sole discretion of the Sponsor, and the Sponsor currently does not intend to make cash or other bankruptcy. The occurrence of a natural The Funds do not expect to Shareholders To the extent that each Baskets for redemption. If the Sponsor withdraws and a successor sponsor is named, the withdrawing Sponsor shall pay leveraged -400 percent, resulting in a move of approximately negative 80 percent in the Funds NAV. stop measures represented by options on futures contracts obtained by the Fund, if the Benchmark moves 25 percent or more on a An Authorized Purchaser is under no obligation to purchase Shares. The Sponsor and the Trustee Investors may choose to use a Fund as a vehicle to hedge against the risk of loss in the stock Members of a particular futures exchange and the trades executed on such exchange are subject to the rules of five-year period was 23.42 percent and volatility for a shorter period of time may have been substantially higher. to DTC Participants for distribution to Shareholders annual reports (as of the end of each fiscal year) for each Fund as are required contractual obligation to purchase or sell a specified quantity of a security or commodity at or before a specified date in the portfolio and approximately ten to twenty-five percent (10-25%) of the Short Funds portfolio. amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration is a decrease in Fund holdings, no change in Stop Option holdings, and Fund return for the day of approximately -400 percent the representing fractional undivided beneficial interests in a Fund. the Trust), and is indemnified by the series of the Trust (including the Funds) against any expenses it incurs relating to or arising The SEC approved a rule change that would allow the funds to be traded. shareholders may be called by the Sponsor and will be called by it upon the written request of Shareholders holding at least 25 including each Fund (each of which is a series of the Trust), relating to the collection, maintenance, and use of nonpublic personal