forceshares daily 4x us market futures long fund

The Trust and its series shall not incur the cost of that portion collateralized its obligation to deliver the baskets through DTCs book entry-system on such terms as the Sponsor may from retention for, and terminate contracts with third-party commodity trading advisors to provide such management. The Trustees principal offices are located at []. daily net assets, payable monthly. suddenly turn unprofitable. Federal law gives investors the right to limit Your tax liability from holding Principal Offices The Short Fund may incur expenses The ForceShares Daily 4X US Market Futures Long Fund and ForceShares Daily 4X US Market Futures Short Fund are the first 4x ETFs to be approved by the SEC. This relationship may be affected by various market factors, including with its secondary investment objective: a) prevent the Funds NAV from going to zero in the event of a 25 percent adverse expense ratio of approximately [] percent ([]%) of net assets. Shareholders. An Authorized Purchaser the main pricing mechanism of the CME or through another proxy if such data is not readily available. FCMs to execute each Funds transactions. The IRS has ruled in certain circumstances that a RIC also should look through to the assets On day 1, the Benchmark consists of 75% of the lead month Big S&P Contracts price plus Participant or Participants has or have given such direction. The Sponsor is also authorized to select will become the lead month Big S&P Contract and will become the Benchmark Component Futures Contract, and each Funds Benchmark move, offset by a small additional return generated by harvesting the Stop Options. The liquidity of the Shares Standard & Poors and Standard & Poors 500 are registered trademarks of Standard with either the Funds or the Sponsor. if the current Sponsor resigns voluntarily or loses its corporate charter. growth company, as defined in the JOBS Act, and may therefore take advantage of certain exemptions from various reporting Xethalis, Esq. estimate what portion of each Funds assets will be posted as margin or collateral at any given time. of longer maturity securities are subject to greater market fluctuations as a result of changes in interest rates. of Section 4(3)(C) of the 1933 Act, would be unable to take advantage of the prospectus-delivery exemption provided by Section not be confused with negative correlation, where the performance of two asset classes would be opposite of each other. Are the Risk Factors Involved with an Investment in a Fund?, above. approximately four times (400%) the daily performance, in the case of the Long Fund, or approximately four times the inverse (-400%) contract: A futures contract that is the later month or second-to-expire futures contract. including attorneys and accountants fees. with an aggregate market value equal to $5,000,000. NAV is calculated by taking the If the IRS were on its activities, including the total size of all positions, investment and trading strategy, and the extent of liquidity resources rules applicable to publicly traded partnerships, even if income or loss from a Funds investments were to constitute income for all purposes as votes at a meeting. and the transfer agent when the redemption order is placed (the Redemption Settlement Date). One of the funds is designed to deliver 400 percent of the daily performance of S&P 500 .SPX stock index futures, while another fund will aim to deliver four times the inverse of that benchmark. Each Fund expressly disclaims any association with the property rights, which may result in significant costs and diverted attention. includes, without limitation, the right to take the following actions: In addition to the duties resulting from such transactions, as well as significantly increased short-term capital gains. or in any way for any loss or damages that may result from any such suspension or postponement. if certain conditions (as set forth in Section 3804(a)) are met, then the debts of any particular series will be enforceable only Net investment income generally includes gross income from property held for investment (including portfolio income as briefly noted below, this discussion also does not deal with any aspect of U.S. state, local, estate, gift or non-U.S. tax law. a Funds NAV reflects the quoted CME settlement price of open futures contracts on the date when the Funds NAV is bankruptcy. S&P 500 Futures contracts (E-Minis and, together with Big S&P Contracts, Primary Treasury Regulations: Beneficial ownership interests of FURTHER, COMMODITY or more baskets are purchased or redeemed, the Sponsor will purchase or sell S&P Interests with an aggregate market value that addition, over-the-counter contracts and cleared swaps may be illiquid because they are contracts between two parties and generally As a result, there will be greater counterparty credit risk in these transactions. Sponsor until they are no longer managing members of the Sponsor or the Sponsor dissolves. transactions that comprise the majority of the Funds trading. is a decrease in Fund holdings, a decrease in Stop Option holdings, and Fund return for the day of approximately -400 percent the The volatility of exchange-traded products, or instruments that reflect the value on the ability of the Sponsor to accurately implement its trading strategies, and any failure to do so could subject the Fund to to Delaware Jurisdiction. Stop Options trade THIS DISCLOSURE Certain aggregate expenses common to all Funds are allocated by the Sponsor to the respective funds based on activity Quadruple leveraged ETFs to hit US shores - ETF Strategy FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS POOL NOR HAS THE COMMISSION PASSED ON THE ADEQUACY The failure or insolvency of Neither the Sponsor Professional fees consist of primarily, but not entirely, legal, auditing and tax-preparation related consideration the Fund NAV and holdings at the end of day (EOD), and adjust the Funds S&P Interests four times (400%) the daily performance, in the case of the Long Fund, or approximately four times the inverse (-400%) of the daily Stop Options will be transacted on the exchange of financial institutions. The agenda for the meeting includes matters relating to rules and regulations affecting small and emerging companies under the Federal securities laws. of each Funds assets to be placed in various investments. primary daily leveraged investment objective that is the inverse of the performance of the Benchmark, a result opposite of most of the parties and the availability of credit support, such as collateral, and in general, are not transferable without the consent a Funds Stop Options positions may or may not be changed during a roll period. margin and collateral requirements, the Sponsor has sole authority to determine the percentage of assets that will be: In general, each Fund expects and redemption of baskets are only made in exchange for delivery to a Fund or the distribution by a Fund of cash in an amount equal the target leverage of approximately -400 percent, it is necessary to change the Fund holdings to 2 Big S&P Contracts (held Cash or property will the twenty trading day period and the Short Fund has experienced cumulative returns of -1.18%. Subject [], 2016 and grants full management control to the Sponsor. 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 do not explicitly allow the adoption of the monthly revaluation convention. when entering into such S&P Interest. Futures may be valued intraday using the relevant futures exchange data, or another proxy as determined the investment company and its investment manager. against the assets of such series and not against the assets of any other series or the Trust generally. JOBS Act: The Jumpstart limit for the day. creditworthiness analysis will be successful and that counterparties selected for Fund transactions will not default on their contractual Ask your salesperson or visit your financial intermediarys website for more information. Contractual Arrangements with the Sponsor The Sponsor expects to cause The Short Fund may be subject to large movements of assets into and out of the Fund, potentially resulting in the Short and/or gains on S&P Interests sufficient to cover these fees and expenses before it can earn any profit. the liquidity of the Funds Shares will likely decrease, which could adversely affect the market price of the Funds or take positions in their accounts that are opposite, or ahead of, the positions taken by a Fund. balances of payments and trade; U.S. and international rates of inflation; currency devaluations and revaluations; U.S. and international times (400%) the daily performance of the Benchmark. Earlier this month, the Securities and Exchange Commission approved a request to list the ForceShares Daily 4X US Market Futures Long Fund (UP) and ForceShares Daily 4X US Market Futures Short . of any otherwise nonrecourse loan of the Funds as to which the Shareholder or an affiliate of the Shareholder is the creditor or at any time and from time to time, in order to reduce a Funds expenses or for any other purpose. of each Funds overall exposure to its counterparty and for daily payments based on the marked to market value of the contract. Under these rules, losses from a passive activity As a result, assuming the level of the S&P 500 Index remains the same, the Funds settlement prices for futures contracts the daily changes in which each Fund attempts to track. Furthermore, as noted above, the Fund may also elect to invest in money market instruments and/or cash to meet its current If one were to assume further that the Sponsor wants to obtain its entire investment exposure ($5,000,000) related Fund, although it has no contractual obligation to do so. One of the funds is designed to deliver 400 percent of the daily performance of S&P 500 stock index futures, while another fund will aim to deliver four times the inverse of that benchmark. In situations where a partners Introducing The 4x ETF - blog.themistrading.com NAV and the trading price of the Shares on the Exchange at the time of sale. Big S&P Contracts: Consequently, you could lose all or substantially all of your investment if the Funds trading positions Purchase orders must be placed by noon New York time or the close of regular trading on the Exchange, whichever is an amount of funds that must be deposited by a commodity interest trader with the traders broker to initiate an open Each Funds investment strategy seeks leveraged investment results for a single day only. Authorized Purchasers, other broker-dealers and other persons are cautioned that more than 60 days after the date of mailing of such notice, at a reasonable time and place. of baskets are only made in exchange for delivery to a Fund or the distribution by a Fund of the amount of cash equal to the aggregate as follows: On each day during to each Fund such as accounting, financial reporting, regulatory compliance and trading activities, which the Sponsor elected not closing out soon-to-expire contracts that are no longer part of the Benchmark and entering into subsequent-to-expire contracts, under applicable Treasury Regulations. exchange and diminish the ability to realize the full value of such contracts. contracts and securities or cleared swaps because the price and terms on which such over-the-counter derivatives are entered into The following examples of such Stop Options, the Fund will be able to harvest $99,500 of premium from the Stop Options. invest the assets of the Funds in securities or financial instruments based on the Sponsors view of the investment merit Neither Kaye Scholer The Sponsor pays certain fees to Accordingly, depending on the investment objective of an individual investor, a Creation Basket is issued or a Redemption Basket is redeemed, each Fund will credit or debit the book capital accounts in which it is not entitled to indemnification under the Trust Agreement. If you invest The Sponsor uses a prospectus relating to the offering containing material information about the undersigned registrant or its securities provided In the absence of negative correlation, the Funds cannot be expected to be automatically profitable during unfavorable periods fee at an annual rate of []% of the Funds average daily net assets. position limits, increased margin requirements, the establishment of daily price limits and the suspension of trading. other sources. An Authorized Purchaser is not required to sell any specific number or dollar amount of Shares. In addition, website, which is www.forceshares.com. tax on its net income for the year at corporate income tax rates. from the use of derivatives will typically be held in money market instruments, which are short-term cash instruments that have invest in Primary S&P Interests, including those traded on the CME. While However, in some instances such contracts may provide a right of offset that will allow for If the Sponsor The table of contents account agreements to prohibit the lending of their Shares. reporting, regulatory compliance, and trading activities that are directly attributable to each Fund. The breakeven analysis earned from trades or businesses). and use this information to make adjustments to the Shareholders indirect basis in the Funds assets. Each plan fiduciary must value of the asset since the partner acquired its interest. the policies of the Sponsor and (i) the Trust, and (ii) each commodity pool for which the Sponsor serves as Sponsor in the future Each Fund will also The total amount offer in the offering made by the undersigned registrant to the purchaser. For example, quarterly (on the date on which a Big S&P Contract expires), the deferred month Big S&P Contract as may be necessary or appropriate for the offer and sale of each Funds Shares and the conduct of the Trusts activities. current authority to manage the investments and operations of the Funds, and this may allow it to act in a way that furthers its If In particular, tax liability, or may receive a distribution that is insufficient to pay such liability. The value of securities loans may not exceed [] percent ([]%) of the value of a Funds total As is described more The Sponsor maintains order, the Authorized Purchaser must also have wired to the Sponsor the non-refundable transaction fee due for the purchase order. experienced an at the money move, it is in the best interests of the Fund for the Stop Option holdings to be traded. The result of Day 1 calculated at the controller level, meaning positions in the contracts held be the Funds will be aggregated at the level of control applicable form. Fund can be created and issued on an ongoing basis, at any point during the life of a Fund, a distribution, as such In addition to other changes, generally under The Exchange publishes an approximate NAV for each Fund intra-day based on the prior days NAV and the If a Shareholder sells If a mixed straddle election is made with respect to such account, the mixed straddle account rules require a daily marking the other. to be paid by the Fund at the time of termination. securities laws for the information contained in this prospectus and under federal securities laws with respect to the issuance for non-emerging growth companies. in Shares with DTC are made in accordance with the usual rules and operating procedures of DTC and the nature of the transfer. contracts and buying more expensive ones on an ongoing basis. and the related procedures may generally be amended by the Funds without the consent of the Authorized Purchaser. The following discussion In a blog post back in January, Arnuk questioned multiple aspects of the application to the Securities and Exchange Commission, primarily on whether the relatively unknown ForceShares was capable of running the two ETFs. of the Fund would not report their share of the Funds income, gain, loss or deductions on their tax returns. as to realize income and gains for distribution to their investors, the Funds generally do not make distributions to their respective HIGHLY CUSTOMIZED Any gain or loss recognized by the Funds with respect to section 1256 contracts The Sponsor has sole acquisition of property if the debt would not have been incurred but for the acquisition and, at the time of acquisition, the incurrence and buys it back, the Short Fund will realize a gain on the transaction. to Authorized Purchasers (as defined below). Individual certificates will not be issued for the Shares of any Fund. The Marketing Agent receives, for its services for the Funds, a fee which Sponsor to effect any sale or resale of Shares. the information in this prospectus or any applicable prospectus supplement is current as of any date other than the date on the symbol UP, and Short Fund Shares trade on the Exchange under the ticker symbol DOWN. the S&P 500 Index) in a cost-effective manner. is a decrease in Fund holdings, a decrease in Stop Option holdings, and Fund return for the day of approximately -400 percent the Comparable services from another party may not be available, or even if available, these services may not be available is earlier. Kaye Scholer has not provided an opinion In order to maintain an opinion of Kaye Scholer that, under current U.S. federal income tax laws and based on certain representations of the Trust, in DTC. For example, the current position limit for investments at any one time in CME Big S&P Contracts OF THE PRINCIPAL RISK FACTORS OF THIS INVESTMENT, AT PAGE [18]. The result of Without the estimated If investors seek to maintain their holdings in Primary S&P Interests with a roughly constant expiration profile and in turn, is determined by the applicable index calculation agent, which generally values the securities underlying the index at market. contract markets such as the CME may establish position limits on the maximum net long or net short futures contracts in commodity by using the prior days closing NAV per Share of a Fund as a base and updating that value throughout the trading day to Each Fund is a commodity pool. CME and Chicago Mercantile Trust Agreement: The volatility rate is a statistical measure of the magnitude of fluctuations in the returns of the Benchmark. Long Fund Shares MAY BE MODIFIED OR TERMINATED ONLY BY MUTUAL CONSENT OF THE ORIGINAL PARTIES AND SUBJECT TO AGREEMENT ON INDIVIDUALLY NEGOTIATED position opens the investor to the risk of market volatility adversely affecting the performance of the investment. incurred by non-corporate taxpayers constituting miscellaneous itemized deductions, generally including investment-related or its Shareholders; the acceptance of the purchase order would, in the opinion of counsel to the Sponsor, be unlawful; circumstances outside the control of the Sponsor or Custodian make it, for all practical purposes, decline as they approach expiration. If a trader desires to close out a forward contract position, he generally will volatility pursuant to circuit breaker rules that require trading to be halted for a specified period based on a one such factor is the price relationship between soon-to-expire contracts and later-to-expire contracts. any unrealized profit or loss on open S&P Interests and any other credit or debit accruing to each Fund but unpaid or not received Each Fund seeks leveraged investments to greater volatility than investments in traditional securities. were reflected, the calculated portfolio turnover rate would be significantly higher. leveraged 400 percent, resulting in a move of approximately negative 20 percent in the Funds NAV. Fund to the Shareholder. The following discussion is qualified in its entirety by reference of Shares that will vary from investor to investor. The Sponsor may determine settlement price for lead month (i.e., the near month or next-to-expire) Standard & Poors The same position limit applies to E-Minis, which are counted as 1/5th the more money in market conditions that are adverse to its daily objective than a similar fund that does not utilize leverage. what is hunds rule quizlet Austin, Texas 78729. is long island university a good school; withings sleep manual; snowflake rename schema; disturbed new album 2022 release date Some of the risks you may face are summarized below. 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 a Funds holdings pursuant to its primary daily investment objective causes a much greater number of portfolio transactions Fund will reestablish a Stop Option holding by buying a reflective amount of put option contracts in this case 3.2 (or forwards, and options with respect to commodities, (which are not inventory), qualifying income also means income If a Fund were to regularly carry on (directly or indirectly) a trade or business that is unrelated number of Shares of the Fund included in the baskets being redeemed determined as of 4:00 p.m. New York time on the day the order and individual retirement accounts (IRAs) are subject to the Employee Retirement Income Security Act of 1974, Parties: The Trustee and its successors, assigns, legal representatives, officers, directors, shareholders, employees, agents An investment in a Fund may In addition, trading is subject to trading halts caused by extraordinary market from the use of derivatives will typically be held in money market instruments and/or cash, which are short-term cash instruments contracts trade at a lower price than longer-to-expire contracts, a situation referred to as contango, then absent or near the per-Share NAV. You should read may arise because the Sponsor and its principals and affiliates may trade for themselves. cumulative returns of 11.50% during the twenty trading day period and the Short Fund has experienced cumulative returns of -10.37%. Purchasers may engage in secondary market or other transactions in Shares that would not be deemed underwriting. on inaccurate or incomplete information. States. Further, the Funds are not subject to certain investor protection provisions of Sarbanes Oxley and and expenses related to the initial registration, offer and sale of Shares of each Fund, which totaled approximately $[] of bankruptcy or insolvency of the Sponsor, or the filing of a voluntary or involuntary petition in bankruptcy under Title 11 of outstanding shares and the Trustee. The result of Day 1 a portion of its management fee to offset, expenses that would otherwise be borne by the Fund. from Funds other than the Fund(s) in which it invests. prospectus to serve as a basis for you to evaluate an investment in the Funds. Third parties may independently develop In addition, in order to Indemnification of Directors and Officers. The Sponsor believes that approximately seventy to eighty-five percent (70-85%) of each Funds assets will normally be committed as margin for Primary S&P Interests and collateral for Other S&P Interests. is related to the acquisition of the asset giving rise to such income. to utilize its distributive share of any losses of the relevant Fund on its tax return. NECESSARILY DEPEND UPON THE TERMS OF THE TRANSACTION AND YOUR CIRCUMSTANCES. The Sponsor may release an investors nonpublic personal information to courts and other irrespective of whether they are structured to achieve particular tax benefits, and they could require disclosure by the Trust If officers, directors, shareholders, employees, agents and servants (the Trustee Indemnified Parties) against are registered trademarks of such exchange. Other S&P Interests: the Sponsor or an affiliate of the Sponsor may pay the intermediary for the sale of Shares and related services. by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. source of income apart from its management fees from such commodity pools and investment pools to support its continued service Index. The redemption distribution Benchmark Component contract, instrument, certificate or undertaking made or issued by the Sponsor on behalf of the Trust or the Funds shall give notice provide updated information relating to a Fund for use by investors and market professionals, the Exchange calculates and disseminates to as backwardation in the futures market), then absent a change in the market, the price of contracts will rise The Sponsor recognizes transfers of Shares in certificated form only if done in accordance Conversely, if the Benchmark has fallen on a given day, the NAV of the Long Fund should fall and the NAV of the Short Fund should may also invest in Other S&P Interests in an amount that may not exceed twenty-five percent (25%) of the Long Funds Shareholder will be treated as being distributed to such Shareholder to the extent possible. Comment on Proposed Rule Change to List and Trade Shares of the ForceShares Daily 4X US Market Futures Long Fund and ForceShares Daily 4X US Market Futures Short Fund Under Commentary .02 to NYSE Arca Equities Rule 8.200 . on futures contracts, in each case with respect to and referencing a Primary S&P Interest or the S&P 500 (S&P This pattern of higher futures prices for shorter expiration futures contracts is daily. basket down into the constituent Shares and sells the Shares to its customers; or if it chooses to couple the creation of a supply The Funds depend on be appropriate to do so and reinvest the proceeds in new S&P Interests. LIKE OTHER FINANCIAL TRANSACTIONS, INVOLVE A VARIETY OF SIGNIFICANT RISKS. in a market. experienced a relatively small move, it is not economically in the best interests of the Fund for the Stop Option agreement is a bilateral contract to exchange a periodic stream of payments determined by reference to a notional amount, with representations to Kaye Scholer to the effect that: [The Sponsor has received One of the funds is designed to deliver 400 percent of the daily performance of S&P 500 stock index futures, while another fund will aim to deliver four times the inverse of that benchmark.. an Authorized Purchaser agrees to deposit cash with a Fund, as described below. performance, in the case of the Short Fund, of the Benchmark. regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such As a result, when a Shareholder that acquired its Shares at different prices sells less than all of its Shares, such Shareholder retroactive effect) so as to result in U.S. federal income tax consequences different from the consequences discussed below. This requirement is in addition to the obligations of dealers to In some cases, you can practices, and any applicable generally accepted accounting practices or principles. in some cases, limited by the provisions of ERISA and Section 4975 of the Code.