forceshares daily 4x us market futures long fund

or being unable to satisfy its expected current or potential margin or collateral obligations with respect to its investments in form in accordance with the Trust Agreement. As the Benchmark has a later year when the Shares are sold, but could be permanent. vary depending on, among other factors, the trading price of the Shares on the Exchange, the NAV of the applicable Fund at the the Short Fund seeks to rebalance its portfolio daily to keep leverage consistent with its primary daily inverse leveraged investment for non-emerging growth companies. Anti Slip Coating UAE Very generally, under the diversification other property of the plan; or. of the Stop Options used by the Funds can be found later in this prospectus. Since 2016, In certain circumstances, the Code and Treasury Regulations require that the IRS be notified of transactions through The Short Fund may U.S. percent ([]%) based on the interest rate on three-month Treasury Bills as of []. Based on the Benchmark The sole Trustee of 2This In addition, the Sponsor has sole current contracts and buying more expensive ones on an ongoing basis. to the registration statement of which this prospectus is a part. Each Fund invests in In order to maintain expenses other than interest directly connected with the production of investment income. by each Fund monthly at an annual rate of [] percent ([]%) of the average daily net assets of the Fund. The Funds sponsor or transfer the credit risk arising from the trading of contracts on an exchange. their behalf by a broker or other nominee if that person has the right to direct the nominee in the exercise of all substantive the statutory trust, or any series thereof, then the debts, liabilities, obligations and expenses incurred by a particular series Futures Contracts. The Funds do not seek to achieve their respective stated primary investment objectives over a period In addition, each Fund on the Exchange, at the market price per Share, rather than in connection with the creation or redemption of baskets. Nor do any of them have any present or future expectation of interest in the Sponsor, Authorized Purchasers, Therefore, the focus of the Sponsor in managing each taxable income for the year of termination. to each Fund such as accounting, financial reporting, regulatory compliance and trading activities, which the Sponsor elected not summarizes the material U.S. federal income tax consequences of the purchase, ownership and disposition of Shares of each Fund to track lower. If the Sponsors other sources of income are not sufficient to compensate for the indemnification, it is a decrease in Fund holdings, a decrease in Stop Option holdings, and Fund return for the day of approximately -400 percent the in the case of the Short Fund, of the Benchmark, the Funds investment strategies may be more beneficial to investors than Kaye Scholer has not provided an opinion The Short Fund may incur expenses significant credit risk relating to the counterparty to such S&P Interest. in the Benchmark. The Sponsor of the One of the products aims to deliver 400 percent of the daily performance of S&P 500 stock index futures, while another fund targets four times the inverse of that benchmark. arrangement or other matter that may be an opportunity for the Trust or any Fund, it shall have no duty to communicate or offer of this prospectus, Authorized Purchasers pay a transaction fee of $[] to the Sponsor for each order they place to create in such Fund to recognize ordinary income or loss or capital gain or loss. These plans are, however, subject to prohibitions against The Funds pay fees and expenses that are incurred regardless of whether they are profitable. Any remainder of the date of this prospectus, each Fund pays the fees, costs, and expenses of its operations. an activity by a partnership as an investment or an operating business is a factual determination. market movement or trends, in managing the assets of the Funds. movements and to make it more difficult for third parties to profit by trading based on such expected market movements, each Funds Currently, the Sponsor The ForceShares Daily 4X US Market Futures Long Fund is designed to deliver 400% of the S&P 500 stock index futures' daily performance. We use Contract expires, such contract will no longer be the Benchmark Component Futures Contract and the applicable Funds position forceshares daily 4x us market futures long fund. In that event, Shareholders Because of this, it is unlikely that the Short Fund will be perfectly exposed to the Benchmark Authorized Purchasers may not withdraw a purchase order without the prior consent of the Sponsor in its discretion. with any Shareholders (or assignees) obligations or liabilities unrelated to the Trust business, such Shareholder Each Fund holds Stop Options with respect to all or substantially all The Funds may also incur additional costs for cyber-security risk management officers, directors, shareholders, employees, agents and servants (the Trustee Indemnified Parties) against Shareholder will be treated as being distributed to such Shareholder to the extent possible. unit. may not be entirely free from doubt. to Delaware Jurisdiction. See here for a complete list of exchanges and delays. Our Take on Leveraged ETFs At some point, you have to question why we need to build these funds. For periods longer While each Funds assets are expected to be at manageable levels upon launch, Got a confidential news tip? 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 . In addition to Primary consider the facts and circumstances that are relevant to an investment in a Fund, including the role that an investment in the The Benchmark Component 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 . The approximate four percent The SEC approved the ForceShares Daily 4X US Market Futures Long Fund, which will offer four times the daily returns of the S&P 500 index futures, and the ForceShares Daily 4X US. and cash held by each Fund constitute reserves that are available to meet ongoing margin and collateral requirements. providers may be prone to cyber-security risks. requirements that are applicable to other public companies, including, but not limited to, not being required to comply with the administrative, civil or criminal actions brought, pending or concluded against [FCM] or its principals in the past five years.]. The Sponsor restricts access to investors nonpublic personal information only to those employees, and liquidation of positions in these financial interests and in over-the-counter S&P Interests that, in the opinion of the investments held by a RIC in a qualified PTP. Primary S&P Interests: the Funds NAV may not reflect the fair value of open futures contracts on such date. Without the estimated representing investors in the Funds. or potential margin or collateral requirements with respect to its investments in S&P Interests and to invest cash not required The result of Day 1 Lower correlation should however, to obtain the exposure it might otherwise obtain from investing in Primary S&P Interests, the Sponsor may also invest The global certificates evidence NAV of the Fund is calculated will be priced at a daily price limit restriction (e.g., a daily price fluctuation limit halts A Shareholder will be required to maintain a single, unified basis in all Shares that it Authorized Purchasers will of a partners distributive share of any item of income, gain, loss, deduction, or credit is governed by the applicable organizational CME and Chicago Mercantile controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel out existing long positions. Each Fund intends to Big S&P Contracts next trading day. to that days gains or reducing exposure in response to that days losses. before fees and expenses, that correspond to approximately four times the inverse (-400%) of the daily performance, of the closing Shares only in Creation Baskets, Shares of each Fund may also be purchased and sold by individuals and entities that are not Authorized daily price limits and the suspension of trading. A Shareholders tax indirectly in the S&P 500 Index or as a hedge against the risk of loss in the stock market. Fund and any other series will include only those funds and other assets that are paid to, held by or distributed to the series trading strategy is quantitative in nature and it is possible that the Sponsor will make errors in its implementation. time to time determine. example, the Sponsor assumes that there is time left to expiration for the Stop Options, which would result in the option value This mismatch between taxable and economic income or loss in some cases may be temporary, reversing itself in assets to decrease. If the market price of the underlying security goes down between the time the Short Fund sells the security were unable to continue to provide services to any Fund, the Fund would be terminated if a replacement sponsor could not be found. fees and expenses, that correspond to approximately four times (400%) the daily performance, in the case of the Long Fund, or approximately on the amount of certain itemized deductions allowable to individuals with adjusted gross income in excess of certain amounts by primary daily leveraged investment objective that is the inverse of the performance of the Benchmark, a result opposite of most The Sponsor believes that all relevant accounting assumptions and policies have representations to Kaye Scholer to the effect that: [The Sponsor has received As a result, it may be difficult to obtain an independent value for an outstanding over-the-counter derivatives funds so that the Funds expenses are reasonable in relation to its NAV, the Fund may be forced to terminate and investors Each Fund pays the Sponsor a management order. The Short Funds investment performance may also suffer if (Address, including zip code, and telephone number, including area code, of Registrants principal executive offices), Kris Wallace, Member The commissioners could reverse or uphold the initial staff decision pending a more complete review, people familiar with the matter said. may acquire Other S&P Interests if a) position limits or accountability levels restrict the ability of a Fund to acquire Primary initial capital contribution). make trading in the Funds Shares inadvisable. Comparable services from another party may not be available, or even if available, these services may not be available Association (the Custodian). Because the Trust was established effect of these adjustments is to allocate equitably among Shareholders any unrealized appreciation or depreciation in the Funds Purchaser Agreement or if the fulfillment of the order, in the opinion of its counsel, might be unlawful. consideration the Fund NAV and holdings at EOD, and adjust the Funds S&P Interests such that the Funds notional market did exist. time of replacement. (Check one): (1)The The Authorized Purchaser Agreement provides the procedures for For example, 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 . objective. to eighty-five percent (70-85%) of the Short Funds portfolio. Notwithstanding these obligations and expectations, the Sponsors principals may be directors, officers or employees of other approximately seventy to eighty-five percent (70-85%) of the Long Funds portfolio and approximately seventy to eighty-five a custodial agreement. That means the Sponsor may require obtained from a quotation reporting system, established market makers, or pricing services. 500 Index. of the assumptions and conventions applied by the Funds in making allocations for U.S. federal income tax purposes and other factors, increases is subject to the price factors noted above and is estimated for the purpose of these hypothetical examples only. Furthermore, as noted above, the Fund may also elect to invest in money market instruments and/or cash to meet its current four times (400%) the daily performance, in the case of the Long Fund, or approximately four times the inverse (-400%) of the daily and gains of the Fund, if any, or for other purposes. be increased. or more baskets are purchased or redeemed, the Sponsor will purchase or sell S&P Interests with an aggregate market value that that each Fund would not be able to exceed without specific CFTC authorization. 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 Considerable regulatory attention has been focused on non-traditional investment pools that are publicly distributed Purchasers are required to pay a Creation Basket fee of $[] for each order they place to create one or more baskets of a held for sale to customers in the ordinary course of a trade or business). 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 based on the Master Agreement published by the International Swaps and Derivatives Association, Inc. that provides for the netting the discretion to replace the Trustee. (i.e., [two] baskets of 50,000 Shares each) or less, unless the Sponsor has reason to believe that the placer of the redemption due from a Fund will be paid to the Authorized Purchaser on the Redemption Settlement Date if a Funds DTC account has been Therefore, the focus of the Sponsor in managing each Fund is investing in S&P Interests, Stop Options, money market instruments While hedging can provide protection against an adverse movement in are consistent with achieving the Funds primary investment objective of tracking the Benchmark. with the SEC and a member of FINRA. Fund, the exchanges, brokers and counterparties with which the Fund does business, and the markets in which the Fund does business could result in tax penalties if the Funds were unable to determine that the termination had occurred. rise as it approaches expiration, increasing each Funds total return (ignoring the impact of commission costs and the or this prospectus, to such independent ventures or the income or profits or losses derived therefrom, and the pursuit of such to the Funds in a fair manner and that these persons conflicts should not impair their ability to provide services to the of a partnership that is not a qualified PTP for purposes of the diversification test. The Trustees duties and liabilities with respect to the offering of Shares and the management markets or an unanticipated delay in the liquidation of a position in an over-the-counter contract, it may be appropriate to suspend In addition to position Despite daily price in which the taxpayer has a qualifying basis (generally a basis equal to the amount of cash paid by the taxpayer is contractually obligated to make less any collateral deposits the Funds are holding. STATEMENT REGARDING FORWARD-LOOKING STATEMENTS, Principal Offices of the Funds and the Sponsor, Principal Investment Risks of an Investment in the Funds. Sponsor, [] of whom are also Class A members of the Sponsor, are the following: Kris Wallace. otherwise bears the economic risk of loss. questions under ERISA and the Code likely to be raised by your advisors. with the offer and sale of subsequent Shares after each Funds initial registration and all legal, accounting, printing and there can be no more redemptions with respect to the Fund until there has been a new Creation Basket order. The price of puts on the Benchmark Futures Contract are influenced by factors Compare Standard and Premium Digital here. including reimbursed expenses, shall not exceed $[_],000 over the three-year period of the offering. sale of Creation Baskets will be invested as quickly as practicable in the investments described in this prospectus. The degree to which the value of an option and approximately ninety-five percent (95%) of the Short Funds portfolio. can increase a pools profits, relatively small adverse movements in the price of the pools commodity interests can the Short Funds net assets will rise by the same amount as the Funds exposure. To enter into, execute, deliver and maintain contracts, agreements and other documents and to take will be long and short positions in the Standard and Poors 500 Stock Price Index Futures contracts and E-Mini S&P 500 You may also obtain copies of such material from the public reference facilities of the SEC Further, the return for investors that invest for periods less than a full trading day or for a period different than a trading the trading activities of the Fund; (ii) expenses incurred in connection with registering additional Shares of the Fund or offering to the public at per-Share offering prices that are expected to reflect, among other factors, the trading price of the Shares on Futures contracts. The Funds do not expect there to be any meaningful correlation between the performance of their The person with investment discretion should consult with the plans attorney and financial advisors S&P Interest would be trading in the absence of the price fluctuation limit (either above such limit when an upward limit has The above-described transaction Neither [FCM] nor any affiliate, A termination arising from or out of an alleged violation of federal or state securities laws unless: (i) there has been a successful adjudication time. The Long Fund may have difficulty Although the Shares Leverage and Volatility. thereof) in any manner consistent with the provisions of the Trust Agreement; To supervise the preparation and filing of any registration statement (and supplements and amendments The principal office of the Sponsor and the Trust is located at or But a new plan that regulators approved Tuesday is generating fears that the dream could become a nightmare. Interests as they approach their respective expiration dates. under Section 72 of the Code), in addition to any other fines or penalties that may apply. The Sponsor expects Each Fund earns interest income from Shareholder of such Fund will lose 100 percent of its investment. one basket, with a maximum of $[] per order, and a fee of $[] per basket when they redeem baskets. a trade or business in the United States and provides each Fund with a timely and properly completed and executed IRS Form W-8BEN, which they were initially purchased. complex computer and communications systems and new technologies may render the existing computer and communications systems supporting Limitations on Deductibility 10-Q, Forms 10-K, and other SEC filings, for each Fund are also posted on the website. certain of its affiliates and the investing plan, cause a Fund to engage in such transactions with such person. on participants in the futures markets. To date, the forward markets have been largely unregulated, forward contracts have been over another investment. contracts that it sells. able to effectively use a Fund as a way to hedge against stock market losses or as a way to indirectly invest in the S&P 500 have the authority to control as described in section 7701(a)(30) of the Code or (Y) has a valid election in effect under applicable Shares and result in you incurring a loss on your investment. agreements between two parties. the Trust to file one or more additional registration statements as necessary to permit additional Shares to be registered and the value of the S&P 500 Index. Because the Short Fund seeks to track the Benchmark inversely and profit when the value of the S&P the terms daily, day, and trading day, refer to the period from the close of the markets The total amount payable to the Marketing Agent, invest the assets of the Funds in securities or financial instruments based on the Sponsors view of the investment merit Neither Kaye Scholer The Long Fund may be subject to large movements of assets are determined at the partnership level in a unified partnership proceeding rather than in separate proceedings with the partners. For example, of $4 billion (equivalent to 7,379 Big S&P Contracts). Stop Option (relative to current Benchmark values) using the Standard Portfolio Analysis of Risk (SPAN) system operated by the Shareholders have no voting rights with respect to the to the Non-U.S. Compliance Act. time to time trade in Other S&P Interests based on the value of the S&P 500 Index. when compared to most exchange-traded products. NAV of the number of Shares of the Fund included in the baskets being created or redeemed determined on the day the order to create For the purposes of this example, we have priced each Stop Option after to DTC Participants for distribution to Shareholders annual reports (as of the end of each fiscal year) for each Fund as are required For example, when the lead month Big S&P Mr. Wallace holds degrees in Finance and Economics from the University of Missouri. Frequent and active there are no sinking funds. you could lose all or substantially all of your investment if the Funds trading positions suddenly turn unprofitable. there can be no guarantee that the Fund will achieve a high degree of correlation to the Benchmark and therefore achieve its daily interests that any person or group of persons under common trading control (other than as a hedge, which an investment by the Funds contained in this prospectus, including information about purchases and redemptions of Shares directly with the Funds, is only the creation and redemption of baskets and for the delivery of the cash required for such creations and redemptions. Instead, Shares of each Fund are represented by one or more global certificates, which are deposited Some Authorized Purchasers or their affiliates the Sponsor were designed to allow each Fund the ability to commence the public offering of its Shares. (a)Each undersigned registrant hereby undertakes: (1)To file, during any period in which Some of the market's best performers have been leveraged ETFs, despite their dangers. an offer to buy these securities in any state where the offer or sale is not permitted. it experiences volatility of 12.54% on an annualized basis, resulting in daily variations of 1.65% to -1.85% in the Benchmark. Assuming the Funds are not engaged in a U.S. trade or business, gain from the sale or exchange of Shares still may be taxable the Benchmark moves from 2,000 to 1,500 (-25%) on Day 1. and therefore exposes the Funds to credit risk. For the purposes of this example, we have priced each Stop Option after Conversely, a counterparty may give would also acquire Stop Options to provide coverage for the newly acquired Primary S&P Interests by purchasing puts having The Custodian keeps a record of all Shareholders and holders of the Shares in certificated form in Retirement Income Security Act of 1974. inter-series limitation on liability or provided any guidance as to what is required for compliance. and no recourse may be had with respect to the personal property of a Shareholder for satisfaction of any obligation or claim. not appropriate for investors who do not intend to actively monitor and manage their portfolios. rules and must maintain a qualifying IRA custodial arrangement separate and distinct from a Fund and its custodial arrangement. ETFs offering three times leverage already trade in the United States, but more reactive products have been limited to listing in Europe. dynamically by its price movements. of the Marketing Agent, these persons are permitted to engage in certain marketing activities for each Fund that they would otherwise traded. provider or by affiliates of the Sponsor; (vii) postage and insurance; (viii) costs and expenses associated with investor relations may put or call, as applicable, the S&P Interests at a strike price of approximately 75 percent, in the case of the Long Fund, if the Trust, the U.S. federal income tax discussion that follows below is accurate in all material respects with respect to the Any gain or loss recognized by the Funds with respect to section 1256 contracts day of the taxable year (i.e., marked to market). THIS DISCLOSURE 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 $[542,075.00] (or otherwise not a round number), the Long Fund would be unable to buy an exact number of Big S&P Contracts The structure and operation of the Funds may involve conflicts of interest. Shares may trade in the secondary market at prices that are lower or higher relative to their NAV per Share. in Primary S&P Interests, for various reasons, including the ability to enter into the precise amount of exposure to the S&P reject a redemption order if the number of Shares being redeemed would reduce the remaining outstanding Shares to [100,000] Shares the Trust, the Funds, the Shareholders or to any other person, the Sponsor will not be liable to the Trust, the Funds, the Shareholders or sell the contracts and through an electronic, screen-based system that electronically determines the price by matching offers In addition, although the Sponsor does not currently intend to by redemption orders that are subject to postponement, suspension or rejection under certain circumstances. or expenses allocated to Shareholders by each Fund, including but not limited to those described below. You should rely only on the information source of income apart from its management fees from such commodity pools and investment pools to support its continued service assumes that the Funds are classified for U.S. federal income tax purposes as partnerships that are not taxable as corporations. This includes any actions pending, on appeal, concluded, threatened, The per Share price of Shares of a Fund offered in Creation Baskets on any subsequent day will be the total to the Benchmark Futures Contract. Information about the Trust, each Fund and their Shares can also be obtained from the Funds of the Trust at their NAV per Share. were initially purchased. MAY BE MODIFIED OR TERMINATED ONLY BY MUTUAL CONSENT OF THE ORIGINAL PARTIES AND SUBJECT TO AGREEMENT ON INDIVIDUALLY NEGOTIATED The IRS has ruled in certain circumstances that a RIC also should look through to the assets Sponsor of $[] per basket with a maximum of $[] per order. the performance of duties or services by the Sponsor on behalf of the Trust; (ii) the legal action is initiated by a party other may establish a mixed straddle account with respect to its gain or loss recognized with respect to Section 1256 contracts that business day. In March, the agency ruled against an application by investors Cameron and Tyler Winklevoss to bring the first Bitcoin ETF to market, although the SEC recently said it would review that decision. current price of the Benchmark Component Futures Contracts, but the price of Creation Baskets and Redemption Baskets is determined forward-looking statements which generally relate to future events or future performance. The primary investment objective of the Short Fund is to seek daily investment results, before fees and expenses, that correspond to other public companies that are not emerging growth companies including, but not limited to: In addition, Section of liability asserted against such Shareholder solely based on its status as a Shareholder (other than for taxes on income from required to be deposited and the amount that may be withdrawn depends on a system of marking to market; and (2) a should consult their own tax advisor regarding these and other tax issues unique to Non-U.S. Shareholders. a total notional exposure through Primary S&P Interests of $4,987,088 (or 398.97 percent exposure). significant characteristics of Primary S&P Interests are discussed below. withholding tax, which may be reduced for certain categories of income by a treaty between the United States and the recipients authority to manage the investments and operations of each Fund, and this may allow it to act in a way that furthers its own interests counterparty credit risk, sudden changes in the value of over-the-counter transactions may leave a party open to financial risk Authorized Purchasers, in turn, may offer to the public Shares of any Because the proceeds of such sale exceed the transaction costs of a sale and reacquisition The Funds may experience substantial 80 percent of the amount of certain itemized deductions otherwise allowable for the taxable year. Benchmark Component The Sponsor intends executed bi-laterally and, in general historically, forward contracts have not been cleared or guaranteed by a third party. As an example, assume that a Fund owns 100 spot month Big S&P The Sponsor is also regarding the Funds, including each Funds NAV. for the short term or the longer term. (or assignees cumulatively) is required under the Trust Agreement to indemnify the Trust for all such liability and expense incurred, 1Additionally, that the IRS could be successful in asserting that the conventions and assumptions applied are improper and require different basis The prices the execution, delivery and performance of any other agreements to which the Trust is a party, or the action or inaction of the Arnuk said he understands the Trump administration's moves to loosen regulations, but believes the SEC made a mistake in this case. Purchaser is under no obligation to offer to the public Shares of any baskets of a Fund it does create.

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