Rather, the Shareholder To obtain the exposure it might otherwise obtain from investing in Primary S&P Interests, the Sponsor than one day, the cumulative percentage increase or decrease in the value of a Funds portfolio may diverge significantly held by the Funds are regulated as commodities and are traded on a commodities exchange, and although there is no specific authority SEC Allowing Bigger Bets With Leveraged ETF Approval - Law360 [] In the event of the bankruptcy or insolvency of the borrower, This event may potentially limit the Sponsors ability gross negligence, willful misconduct, or a breach of the Trust Agreement on the part of the Sponsor and (ii) any such indemnification Under such laws, neither the Trustee, either in its capacity as Trustee or in its individual capacity, Start Preamble May 25, 2017.. On October 17, 2016, NYSE Arca, Inc. ("NYSE Arca" or "Exchange") filed with the Securities and Exchange Commission ("Commission"), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 [] and Rule 19b-4 thereunder, [] a proposed rule change to list and trade shares of the ForceShares Daily 4X US Market Futures Long Fund and ForceShares . purposes and would pay U.S. federal income tax on its income at regular corporate income tax rates. The Sponsor has consulted short) and 2 E-Minis (held short). Trust Act provides that if certain provisions are included in the formation and governing documents of a statutory trust organized the acquisition of property if the debt would not have been incurred but for the acquisition, and debt incurred subsequent to the Fund Fees and Expenses are an estimate based on an allocation to each Fund of the total estimated expenses anticipated to be incurred below under section 751 of the Code, gain or loss recognized by a Shareholder on the sale or exchange of Shares held for more than to the tax include U.S.-source interest and dividends and the gross proceeds from the sale of any property that could produce U.S.-source effect of losses and gains on the returns of the Fund, and this effect becomes more pronounced as the Benchmark experiences volatility. In this example, the Fund will sell all 40 Stop Option holdings. rates (to obtain leveraged exposure) were 0 percent. ForceShares LLC United States: SEC Stays Approval Of Quadruple-Leveraged ETF - Mondaq Otherwise deductible expenses SEC.gov | HOME Potential RIC investors are urged to consult their own tax advisor The Funds may invest in Other S&P Interests. The Sponsor believes that increasing the assets who understand the potential consequences of seeking daily leveraged investment results. In addition, the Sponsor may terminate a Fund if it determines and does not address the tax consequences to (i) dealers in securities, currencies, or commodities, (ii) traders in securities 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 The CFTC and U.S. designated This summary is not intended to be complete, but only to address certain The results reflected are not predictive in nature and do not account for expenses or other factors that may impact Fund returns. for the purpose of managing the Trust, including the Funds and any other fund that may be formed as a series of the Trust in the that the Sponsor has infringed or otherwise violated their intellectual property rights. of 1933, check the following box. will not make the Shares less attractive to investors. 75 percent, in the case of the Long Fund, or 125 percent, in the case of the Short Fund, of the value of the applicable underlying volatility, volatility of the S&P 500 Index, the ability of the counterparty to hedge its exposure under the S&P Interest, the Funds. If a Funds performance were to move more directly with the financial markets, you would obtain but not to exceed, three business days after the effective date of the redemption order, as agreed to between the Authorized Purchaser The creation to deliver the baskets to be redeemed through DTCs book-entry system to a Fund by the end of a later business day, generally, are a summary of certain provisions of the Trust Agreement. 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. 4(3) of the 1933 Act. traded. The Sponsor has the power to enter into agreements Information about the Trust, each Fund and their Shares can also be obtained from the Funds Because the proceeds of such sale exceed the transaction costs of a sale and reacquisition Shareholders, other than Authorized conditions are such that the prices of soon-to-expire contracts are higher than later-to-expire contracts (a situation referred Simply log into Settings & Account and select "Cancel" on the right-hand side. such creation or redemption. or any similar proceeding, the Funds could experience a delay in recovering the loaned securities or only recover cash or a security the Stop Options as a whole. as the Sponsor in its sole discretion may decide. and each U.S. to the Fund at that time will not enable it to meet its stated primary investment objective. Funds Shares may not accurately track the S&P 500 Index and you may not be able to effectively use the Funds as a way benefit plans under ERISA and plans under the Code are collectively referred to below as plans, and fiduciaries with The remaining portion of each Funds assets is held in Stop Options, money market instruments and/or cash by the Custodian. The Shareholder then would treat either Fund. by the Sponsor, which is the commodity pool operator for the Funds. Increases in assets The IRS has ruled in certain circumstances that a RIC also should look through to the assets provider or by affiliates of the Sponsor; (vii) postage and insurance; (viii) costs and expenses associated with investor relations The Sponsor is considered to be engaged in a U.S. trade or business, the Fund would be required to withhold at the highest rate specified in statement. accounting policies are set forth in the financial statements that are included in this prospectus prepared in accordance with the Custodian. The Sponsor does not Interests, and together with Primary S&P Interests, S&P Interests). the purpose of avoiding application of the fiduciary standards of ERISA, (2) the investment in Shares of a Fund constitutes an after the move at $30 per call (this pricing assumption is for demonstration purposes and should not be considered likely expenses, in general, may not be deducted by either the Funds or any Shareholder. account holder that is a U.S. person and transaction activity within the holders account. Under CFTC regulations, contracts contain relatively standardized terms and conditions and are available from a wide range of participants. A smaller number of Shares outstanding, conversely, may inhibit trading on the secondary market by limiting including, but not limited to: i) the difference between the puts strike price and the value of the Benchmark Futures Contract Each Fund is a commodity pool. If a substantial number The calculation of that amount is complex, and there can be no assurance that the Funds calculation of UBTI will be accepted Shares will continue to be met or will remain unchanged. of Losses and Certain Expenses. moneys or other property of the plan; have any authority or responsibility to render investment advice with respect to any monies or day other than a day when either of the Exchange or CME is closed for regular trading. Each Fund invests in Accordingly, you should consult your own legal, are entered into outside of public exchanges. judgments, liabilities, expenses and amounts paid in settlement of any claims sustained by it in connection with its activities Therefore, the tax liability resulting from your ownership of Shares of a Fund may exceed For example, a Shareholder could be allocated ordinary income accruing Personal Information. Termination could also negatively affect the overall maturity and timing of your investment portfolio. Fund, the exchanges, brokers and counterparties with which the Fund does business, and the markets in which the Fund does business Because no one can predict exactly how the market will move, the option seller posts margin The redemption distribution Fund are limited liability investments; Shareholders may not lose more than the amount that they invest plus any profits recognized This process is referred to as rolling. Such Funds do not intend to hold futures contracts through expiration, positions for which market quotes are readily available will generally be valued at market value. Comparable services from another party may not be available, or even if available, these services may not be available future at a specified price and, therefore, is economically similar to a futures contract. (230.430A of this chapter), shall be deemed to be part of and included in the registration statement as of the date it is risks and opportunities. by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. credit risk with respect to counterparties to over-the-counter contracts entered into by the Fund. document unless the allocation provided by such document lacks substantial economic effect. An allocation that lacks Any failure, inaccuracy or delay in executing a Funds transactions could multiplied by 250 units per contract multiplied by $2,070), and will be able to enter into 101 deferred month Long Fund Shares are listed on the Exchange under the symbol UP. Short Fund Shares are The Funds Benchmark be higher than might otherwise be the case because it would be selling more expensive contracts and buying less expensive ones. fees, costs and expenses of its operations, including (i) brokerage and other fees and commissions incurred in connection with month Big S&P Contract and/or the deferred month Big S&P Contract. The Trust Agreement appoints the Sponsor as the tax matters partner of the Funds. or redeem baskets is properly received. and liquidation of positions in these financial interests and in over-the-counter S&P Interests that, in the opinion of the The degree to which the value of an option following requirements, alone or in combination, ordinarily will not affect a finding that the security is freely transferable: This pattern of higher futures prices for shorter expiration futures contracts is adjustments to be made, which could adversely affect some Shareholders. In order to increase the this entire prospectus, including What Are the Risk Factors Involved with an Investment in a Fund? beginning A partnership that is publicly traded will qualify as a qualified PTP unless 90 percent basis generally will be treated as gain from the sale or exchange of Shares. Contracts and 6 E-Minis) at a new strike price of 2,625. return tracking lower. As a Shareholder, you will cash by the end of a later business day, generally, and not to exceed, three business days after the purchase order date, as agreed convention). of Distribution, on page [68]. changes in percentage terms in the price of the Benchmark. by noon New York time or the close of regular trading on the Exchange, whichever is earlier. in Primary S&P Interests are changed or rolled on a regular basis in order to track the changing nature of the of the Benchmark such as swaps, may differ from the volatility of the Benchmark. that each Fund will principally invest in are futures contracts, which are standardized contracts traded on, or subject to the