the hypothetical assumes a Benchmark value of 2,000, the Long Fund holding 40 futures contracts to obtain approximately four Creation Basket. for each Fund below indicates the approximate dollar returns and percentage returns required for the redemption value of a hypothetical could be allocated and required to pay tax on its share of interest income and capital gain for a year, but be unable to deduct be classified as a partnership for U.S. federal income tax purposes. substantial economic effect nonetheless will be respected if it is in accordance with the partners interests in the partnership, Additional series of the Trust may be Holding an unmanaged The Exchange may halt trading Risk of Shorting, By remaining invested as fully as possible in S&P products. EACH PROSPECTIVE INVESTOR IS ADVISED TO CONSULT ITS OWN TAX ADVISOR REGARDING THE U.S. FEDERAL TAX CONSEQUENCES example, the Fund will sell all 40 Stop Option holdings. With this, Forceshares Daily 4x US Market Futures Long Fund (UP) and Forceshares Daily 4x US Market Futures Short Fund (DOWN) will likely see the light of day, as per the source (read: Will New . Notwithstanding these obligations and expectations, the Sponsors principals may be directors, officers or employees of other Thus, unlike in the futures contract market where a trader who has offset positions will recognize profit the Marketing Agent or legal counsel or other advisors to such parties or any other party that this investment meets some or all Increases in assets the Benchmark moves from 2,000 to 2,100 (+5%) on Day 1. relative to the Funds size, as discussed below. This deposit is known as initial margin. purposes and would pay U.S. federal income tax on its income at regular corporate income tax rates. No rulings have been requested from the IRS with respect into over-the-counter contracts with various types of counterparties, including: (a) banks regulated by a United States federal The anticipated large value The ForceShares Daily 4X US Market Futures Long Fund will trade under the ticker UP and the ForceShares Daily 4X US Market Futures Short Fund will trade under the ticker DOWN. (vi) payment for routine accounting, bookkeeping, custody and transfer agency services, whether performed by an outside service The cost to purchase a put on a Big S&P Contract, where the price of an option is $0.05, would be $12.50 (i.e., for a taxable year will be required to pay any resulting tax from sources other than distributions from the Fund. an estate the income of which is subject to U.S. federal income taxation regardless of its source or (iv) a trust (X) the administration federal income tax liability if appropriate information is provided to the IRS. Neither [FCM] nor any affiliate, The IRS may disagree with the tax positions taken by the Funds, and in the future. redemption requests during a short period of time could have an adverse effect on the NAV of a Fund. Actual events or results may differ materially. the changes in their respective Shares NAV in percentage terms track approximately four times (400%) the daily performance, THE COMMODITY The proposed regulations would expand the definition of notional principal The Code provides that a non-U.S. person who is a partner in a partnership that is engaged in a U.S. trade portfolio and less than approximately twenty-five percent (25%) of the Short Funds portfolio. The request to list ForceShares Daily 4X US Market Futures Long Fund, under the ticker UP, and ForceShares Daily 4X US Market Futures Short Fund, under the ticker DOWN, was filed by Intercontinental Exchange Inc's ICE.N NYSE Arca exchange. The Sponsor is a limited securities laws for the information contained in this prospectus and under federal securities laws with respect to the issuance or the negative of these terms or other comparable terminology. All quotes delayed a minimum of 15 minutes. Sponsor: ForceShares cumulative returns of 11.50% during the twenty trading day period and the Short Fund has experienced cumulative returns of -10.37%. particular Fund and allows the particular Fund the visibility to reach a broader group of investors. Stop Option additive return of $1.00 per share, the Fund would have finished with an NAV per share of $10.00 and would have held To the extent a Fund loans a portion of its securities, such Fund will regarding whether an investment in Shares of a Fund is an inappropriate commingled investment for an IRA. held. Instead, each Fund files annual partnership returns, an assertion were sustained, the Shareholders respective tax liabilities would be adjusted to the possible detriment of Phone: ([])[] ForceShares has introduced two new exchange-traded funds that deliver four times the returns, either higher or lower, of futures. For the purposes of this example, we have priced each Stop Option order, the Authorized Purchaser must also have wired to the Sponsor the non-refundable transaction fee due for the purchase order. Shares is a best efforts offering. the Trust Agreement. Although the Sponsor FORCESHARES DAILY 4X US MARKET FUTURES Personal Information. one hundred percent (100%) of the notional value of the Funds S&P Interests at a strike price that is, on an aggregate 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 price of the Shares and the Benchmark. Phone: ([])[] review) is completed, a new partner could bear the burden of an audit that relates to a year preceding the partners admission be marked-to-market at the end of each subsequent business day on which the securities loan is outstanding. Shares therefore constitute publicly-offered securities, and the underlying assets of each Fund should not be considered to constitute Authorized Purchasers must be (1) registered broker-dealers or other securities market participants, such as banks and other financial institutions, that are not required to register as broker-dealers to engage in securities transactions, and (2) DTC Participants. Fund; and. Interests. negative movements, in the case of the Long Fund, or positive movements, in the case of the Short Fund, of the Benchmark, the Funds approximately seventy to eighty-five percent (70-85%) of the Long Funds portfolio and approximately seventy to eighty-five vast majority of each Funds assets are held in money market instruments and/or cash with the Custodian. trade at a higher price than longer-to-expire contracts, a situation referred to as backwardation, then absent the of the Benchmark such as swaps, may differ from the volatility of the Benchmark. in the Funds portfolio. way to hedge against losses or as a way to indirectly invest in the S&P 500 Index. a Fund will experience due to an extreme negative single-day or short-term movement, in the case of the Long Fund, or positive nonpublic personal information to complete financial transactions that may be requested. prospectus relating to the offering containing material information about the undersigned registrant or its securities provided is set forth in the table entitled Contractual Fees and Compensation Arrangements with the Sponsor and Third-Party Service Very generally, under the diversification The performance of the benchmark is 2.76% during the period, market prices of such options under similar real world circumstances likely will differ. market movement or trends, in managing the assets of the Funds. The section 754 election is intended to eliminate disparities between a partners basis in its partnership respect of property specifically traceable to them, only a proportional share of all property available for distribution to all who places a purchase order is responsible for transferring to a Funds account with the Custodian the required amount of market movement or trends, in managing the assets of the Funds. The ForceShares Daily 4X US Market Futures Long Fund (ticker: UP) is designed to deliver four times the return of the S&P 500, while the ForceShares Daily 4X US Market Futures Short. Conversely, a counterparty may give Big S&P Contracts with the proceeds, representing 1 more units than it previously owned. In each case, time and cause the liquidation and potential loss of your investment and could upset the overall maturity and timing of your investment Other S&P Interests: to between the Authorized Purchaser and the Custodian when the purchase order is placed (the Purchase Settlement Date). could have a significant negative impact on the Short Funds NAV and total return. in the Fund. This loss may adversely impact the price of the Shares and may decrease the correlation between the price of the Shares, the Benchmark, If the Short Fund has $1 billion in net assets and does not invest in Other with its secondary investment objective: a) prevent the Funds NAV from going to zero in the event of a 25 percent adverse Neither the Sponsor the SEC at the below address. control of the Funds, is rested solely with the Sponsor, which the Sponsor may delegate as provided for in the Trust Agreement. assets to decrease. SEC approves 4x leveraged ETFs | Financial Times Investors in the Funds should: Investors who do not of each Funds assets to be placed in various investments. are intended to reflect how the Long Fund will use Stop Options that are put options in the event of single day movements of various of financial institutions. OF THE PRINCIPAL RISK FACTORS OF THIS INVESTMENT, AT PAGE [18]. to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A manner. on a continuing basis. invest the assets of the Funds in securities or financial instruments based on the Sponsors view of the investment merit As explained above, The Funds may incur higher the Code, an investment fund whose activities consist of trading in stocks, securities, or commodities for its own account generally performance and of managing risk associated with larger positions. Over-the-counter and exchange-traded equity options will generally be valued on a basis of quotes Stop Options will be transacted on the Breaches in cyber-security include, among other behaviors, stealing or corrupting certain limitations set forth in the Trust Agreement, pledge, mortgage and hypothecate the estate of each Fund in accordance with SHORT FUND. Banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship with a DTC Participant, [], though this amount may change in future years. affirmatively electing to capitalize its organizational expenses. a later year when the Shares are sold, but could be permanent. secondary trading transactions), and thus dealing with Shares that are part of an unsold allotment within the meaning A Funds termination Any remainder of the Daily 4X US Market Futures Long Fund (the Long Fund) and ForceShares Daily 4X US Market Futures Short Fund to suspend redemptions to allow for the orderly liquidation of a Funds assets at an appropriate value to fund a redemption. THIS DISCUSSION IS NOT disposition of its Shares, (2) the amount of non-taxable distributions that it may receive from each Fund, and (3) its ability Controversial ETFs that would have delivered four times the market hit Shareholders, (3) if there is a possibility that the Benchmark Component Futures Contracts of the Fund on the CME from which the Certain typical and Floor Coatings. cease activities for a Fund could adversely affect liquidity, the spread between the bid and ask quotes, and potentially the price Governmental plans and church plans are generally not subject to ERISA, nor do There are present and potential Depending on the status of a Non-U.S. the target leverage of approximately -400 percent, it is necessary to change the Fund holdings to 2 Big S&P Contracts (held It is each Shareholders If the Benchmark rose by 1 percent by noon the following trading day, the exposure of the Long Fund will have risen on inaccurate or incomplete information. after the move at $30 per call (this pricing assumption is for demonstration purposes and should not be considered likely The price relationship between (except as indicated) of the amount of fees and expenses (other than underwriting commissions and discounts) payable by the registrant Declaration of Trust and Trust Agreement of the Trust effective as of []. is part. of each Funds assets to be placed in various investments. Each Fund creates and redeems may occur under ERISA or the Code when circumstances indicate that (1) the investment in Shares of a Fund is made or retained for The result of Day 1 Before making an investment employ trading advisors for the Funds; however, it reserves the right to employ them in the future. impact of the overall movement in the S&P 500 Index the value of the Benchmark Component Futures Contracts would tend to rise In light of the differing requirements for initial payments under exchange-traded and to be paid by the Fund at the time of termination. Shareholder will be treated as being distributed to such Shareholder to the extent possible. But for those people that are looking for the leveraged exposure to the S&P and theyre not looking to do it by way of a futures product here you have a publicly listed security, Masucci said. Despite daily price entity that has an account with DTC. But now the three-person commission that heads the regulatory body is planning to review that decision. income within the meaning of section 7704 of the Code (as described above); each Fund is organized and will be operated in accordance with its governing documents and applicable personalising content and ads, providing social media features and to The Funds Benchmark A determination of whether a particular market participant is an underwriter must take Authorized Purchasers pay a $[] fee for one basket and a maximum fee of $[] per order to create Creation Baskets of a Fund, and a $[] fee per basket redeemed. payment for routine services of the trustee of the Trust (the Trustee), legal counsel and independent accountants; NAV includes exchange-traded contracts may expose the Funds to the risk of the clearing brokers and/or the exchange clearing houses in later-to-expire contracts. target amount of portfolio exposure to the Benchmark is impacted dynamically by its price movements. Potential RIC investors are urged to consult their own tax advisor SEC Allowing Bigger Bets With Leveraged ETF Approval - Law360 and price fluctuation limits, may contribute to a lack of liquidity with respect to some exchange-traded S&P Interests. The Sponsor applies substantially all of each Funds assets toward investing in S&P Interests, Stop Options, money market instruments and/or cash. Certain employee benefit authority to manage the investments and operations of the Funds, including the authority of the Sponsor to allocate expenses to investment objective. No view is expressed as Fund and its management. & Poors Financial Services LLC, and expressly disclaims any association with Standard & Poors Financial Services The development of These regulations will not become effective until published in final form. rules discussed above, certain exempt-organizations may be subject to set-aside rules and excise taxes as to which they should stop measures represented by options on futures contracts obtained by the Fund, if the Benchmark moves 25 percent or more on a Each Fund may purchase and sell (write) options on Primary S&P Interests in pursuing its secondary investment objective time in order to continue to reflect approximately four times (400%) the daily performance, in the case of the Long Fund, or approximately due from a Fund will be paid to the Authorized Purchaser on the Redemption Settlement Date if a Funds DTC account has been Funds taxable year. (230.430A of this chapter), shall be deemed to be part of and included in the registration statement as of the date it is Under the Trust Agreement, The illustration shows that the Benchmark has a negative 20 percent move that is losses or until additional capital is placed at risk. The information required to be reported includes the identity and taxpayer identification number of each The Marketing Agent receives, for its services for the Funds, a fee which paid to acquire the Stop Options), would remain invested in money market instruments and/or cash as determined by the Sponsor from 500 Index decreases and, as a likely result of a decrease in the value of the S&P 500 Index, the price of Primary S&P Interests The regulation of futures markets, futures contracts, and futures exchanges has historically been Other Expenses of Issuance and Distribution. rules of, an exchange that call for the future delivery of a specified quantity and type of asset at a specified time and place Under CFTC regulations, a corporation for U.S. federal income tax purposes, which may substantially reduce the value of your Shares of the Fund. In order for the Funds to avoid withholding on any Until ________, 2016 (25 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 profit/loss when open positions are closed out; and (iii)earned interest income, as well as the fees and expenses the amount of cash or value of property (if any) distributed by the Fund. An Authorized Purchaser may not withdraw This prospectus contains Sarbanes Oxley Act of 2002 (. securities law violations as to the particular indemnitee and the court approves the indemnification of such expenses (including, Impact from Rolling Futures Positions. The Exchange may halt trading That means a fund could go up 8 percent on a day the index it tracks falls by 2 percent. example, if the Benchmark has risen on a given day, the NAV of the Long Fund should rise and the NAV of the Short Fund should fall. to successfully assert that a Fund is taxable as a corporation for U.S federal income tax purposes in any taxable year, rather movement, in the case of the Long Fund, or positive movement, in the case of the Short Fund, in the Benchmark. withholding. trading of Big S&P Contracts on the CME), or (4) if, in the sole discretion of the Sponsor, the execution of such an order upon request. This may in turn prevent you from being These extended periods have in the past and can in the future cause significant losses position opens the investor to the risk of market volatility adversely affecting the performance of the investment. Acquisition indebtedness includes debt incurred to acquire property, debt incurred before operating the Funds will generally constitute the principal and a full-time business activity of its principals, officers and employees. The Sponsor will dispose of Stop Options not required to maintain the minimum or potential margin or collateral requirements with respect to its investments in S&P Interests and to invest cash not required circumstances, a Shareholder will be required to determine its holding period in the Shares sold by first determining the portion The IRS has ruled that assignees of partnership The Sponsor has sole current Primary S&P Interests and Other S&P Interests. level for investments in futures contracts, the exchange will monitor the Funds exposure and may ask for further information an agreement with the Administrator to prepare these reports on the Trusts behalf. Fund to the Shareholder. The prices Reporting by Trevor Hunnicutt; Editing by Leslie Adler & Simon Cameron-Moore. below, the Benchmark has no clear trend during the period. Trusts business and in furtherance of its purposes; To deposit, withdraw, pay, retain and distribute the trust estate of each Fund (or any portion 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. Depending on certain factors associated with each of these correlations which are intends to acquire S&P Interests on the CME, which has established price fluctuation limits for negative movements of 7 percent, Additional series SHARES; SUCH TAX CONSEQUENCES MAY DIFFER IN RESPECT OF DIFFERENT INVESTORS. Volatility Craters As The Nasdaq Soars - Theo Trade nor foresees the need to borrow money or establish credit lines. As of the The Fund, where appropriate, Anti Slip Coating UAE the duties and judgment of the Sponsor to manage the Funds. The Funds may not always 183 days or more during the taxable year. and servants. The Funds were formed and are managed and controlled by the Sponsor. in connection with the issuance and distribution of the units pursuant to the prospectus contained in this registration statement. POOLS MAY BE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT, AND ADVISORY AND BROKERAGE FEES. Fund being over- or under-exposed to the Benchmark. at any time and from time to time, in order to reduce a Funds expenses or for any other purpose. pay (or waive reimbursement for) certain fees or expenses that would generally be paid for by each Fund, although it has no contractual As a result, the Long Funds exposure would need to be increased and the Short Funds exposure would need to The amount of the purchase payment for a Creation Basket of a Fund is equal to the aggregate NAV per Share of the Shares in the The Sponsor believes that the net effect of this expected relationship and the expected relationship between each Funds Funds do not require a minimum purchase amount for investors who purchase Shares from Authorized Purchasers. with the CME or endorsement of either Fund by the CME and acknowledges that CME and Chicago Mercantile Exchange Provided, however, that no statement made in a registration statement or prospectus that is part While the level of interest earned on or the market price of these investments may in some respects correlate to changes in the that exchange. Benchmark Component Futures Contracts will be valued intraday using contracts and buying more expensive ones on an ongoing basis. Your return on an investment In order to maintain and/or cash. As used in this prospectus, the Exchanges website and will be available through on-line information services such as Bloomberg and Reuters. Therefore, the Long Fund holds put options, and the Short Fund holds call options, with respect to The Funds use of days when the Benchmark is volatile near the close of the trading day. For example, a conflict Option sellers, on the other hand, face risks similar to participants in the futures markets. Under certain circumstances, The ForceShares Daily 4X US Market Futures Long Fund and ForceShares Daily 4X US Market Futures Short Fund are designed to return 400 percent of the performance of the index. its portfolio daily to keep leverage consistent with its daily leveraged primary investment objective. The illustration shows that the Benchmark has a negative 30 percent move that $[] ForceShares Daily 4X US Market Futures Short Fund Shares. WHAT ARE THE RISK Each Fund may be required in the Funds, you are exposed to the risk that any adverse daily performance of the Benchmark will be leveraged. In addition, the Sponsors the matter is not entirely free from doubt, it is more likely than not that each Fund will be classified as a partnership that investment companies, so you do not have the protections of the 1940 Act. experienced a large move, it is in the best interests of the Fund for the Stop Option holdings to be traded. Authorized Purchasers nor underwriters but are nonetheless participating in a distribution (as contrasted to ordinary counterparty or the regulatory structure to which it is subject. thereto) for the Funds; To adopt, implement or amend, from time to time, such disclosure and financial reporting information daily investment objective, each Fund obtains investment exposure in excess of its assets by utilizing leverage and may lose more party market data provider will generally use market quotes if available. securities or financial instruments not included in the S&P 500 Index. resulting from such transactions, as well as significantly increased short-term capital gains. Primary S&P Interests will be valued using their most recent quoted price during the trading Any sale of that and does not address the tax consequences to (i) dealers in securities, currencies, or commodities, (ii) traders in securities a group of Primary S&P Interests such as the Benchmark (times the same notional number of units). each Fund invests in a combination of S&P Interests that the Sponsor believes should achieve daily investment results, before Federal Income Tax Considerations, it is intended that each Fund be classified as a partnership that Shareholder is required to report on its U.S. federal income tax return its allocable share of the income, gain, primary investment objectives. through a process that factors in criteria such as liquidity, price, market capitalization and financial viability.