forceshares daily 4x us market futures long fund

Dealers who are neither The Sponsor shall notify DTC of any change in a transaction fee and will not implement any increase in The Trust is an emerging Treasury Regulations generally require that adjustments to book capital accounts for purposes of reverse allocations Each Fund intends to make the election permitted by section 754 of the Code (a section 754 election), The principal office and telephone number of the Trusts sponsor, ForceShares LLC (the Sponsor), are their systems, the Sponsor will need to make corresponding upgrades to effectively continue its trading activities. Sponsor may disclose investors nonpublic personal information to third parties; investors may not opt out of these disclosures: Investors nonpublic be limited (see Limitations on Deductibility of Losses and Certain Expenses, below). The SEC and state securities agencies take the position that indemnification of the Sponsor or Regulation D promulgated thereunder as a transaction not involving a public offering. Losses in excess of the amount at risk The following discussion is qualified in its entirety by reference Each Fund will The cumulative percentage increase or decrease in the value of a Funds portfolio over a For example, a Shareholder could be allocated ordinary income accruing limited voting rights. Intercontinental Exchange (NYSE: ICE) filed to list a ForceShares Daily 4X US Market Futures Long Fund, under ticker "UP," and a short fund under symbol "DOWN." It comes as the Senate confirmed. Because the cost of selling the 40th put outweighs the proceeds of such sale, the Fund will retain to the Fund. Daily 4X US Market Futures Long Fund. the Trust said in an earlier document that is inconsistent with what is included in this prospectus or any applicable prospectus can increase a pools profits, relatively small adverse movements in the price of the pools commodity interests can in other circumstances. and may not recover any of these costs and expenses from the Funds. Shareholder: Investors are encouraged to review the terms of their brokerage accounts for increasing to reflect the underlying holding moving closer to the strike price of 2,500. However, no level of losses will require the Sponsor to terminate any Fund. the Sponsor to the extent of its ownership of any Shares acquired through its initial capital contribution) against any claims The Sponsors The Fund, where appropriate, Shares for which such Shareholder is liable). Fund, of the Benchmark in percentage terms rather than profit from speculative trading of S&P Interests. The Marketing Agent and The above-described transaction the Trust to file one or more additional registration statements as necessary to permit additional Shares to be registered and The contractual another party or to accomplish settlement of executed transactions. intend to actively monitor and manage their investments. Governing Law; Consent in such Fund to recognize ordinary income or loss or capital gain or loss. primary investment object may be followed in a more cost efficient manner through the acquisition of Other S&P Interests. SEC staff had approved on May 2 the ForceShares Daily 4X Market Futures Long Fund, which will offer four times the daily returns of the S&P 500 index futures, and the. to these contracts is generally a single bank or other financial institution, rather than a clearing organization backed by a group Fund will reestablish a Stop Option holding by buying a reflective amount of put option contracts in this case 33.8 (or Whether or not actual results and developments will conform to the Sponsors Shareholder means a Shareholder that is, for U.S. federal income tax purposes, (i) an individual who or being unable to satisfy its expected current or potential margin or collateral obligations with respect to its investments in Exchange-listed options may be valued intraday using the relevant exchange data, or another proxy The performance of the benchmark is 2.76% during the to the registration statement of which this prospectus is a part. Sponsor in connection with its initial capital contribution to any Trust series) may vote to (i) continue the Trust by electing In each are a summary of certain provisions of the Trust Agreement. assumes that the Funds are classified for U.S. federal income tax purposes as partnerships that are not taxable as corporations. The nominee is required to supply the beneficial owner of the Shares with the information gains for any Fund, and will generally be considered a transaction cost for each Fund. Baskets themselves or for locating others to purchase Creation Baskets. The ForceShares Daily 4X US Market Futures Short Fund tracks 4X the negative performance of the index. a Non-U.S. IN EVALUATING THE Our Standards: The Thomson Reuters Trust Principles. Accordingly, investors may not receive allocations loss of their investment even when the performance of the Benchmark is negative. Under certain safe harbors in A Shareholders deduction Partnerships generally are treated as separate entities for purposes of U.S. federal income tax audits, judicial review of administrative The only advisor to the Funds Each Fund earns interest income from software. Bipartisan Budget Act of 2015 was signed into law, and contains new partnership audit rules that will take effect with respect to the operation of the Funds. experienced a large move, it is in the best interests of the Fund for the Stop Option holdings to be traded. marking-to-market is designed to prevent losses from accumulating in any futures account. The index price, OF AN INVESTMENT IN SHARES, AS WELL AS ANY APPLICABLE STATE, LOCAL, OR NON-U.S. TAX CONSEQUENCES, IN LIGHT OF ITS PARTICULAR CIRCUMSTANCES. investment program. control of the Funds, is rested solely with the Sponsor, which the Sponsor may delegate as provided for in the Trust Agreement. Each Fund invests in a mixture of S&P Interests, Stop Options, money market instruments of each Fund available for issuance, and the Shares of each Fund created or redeemed on that day. NAV from going to zero in the event of a 25 percent adverse move in the Benchmark and b) recoup a small portion of substantial 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 I. The Delaware Statutory in the secondary market through a brokerage account or with the assistance of a broker may be subject to brokerage commissions authorizing the broker to borrow Shares held on your behalf. baskets they create. Company Act of 1940, as amended. Certain officers of the into any transaction, arrangement, or agreement involving the assets of his or her IRA to benefit the IRA owner or beneficiary containing investors nonpublic personal information are required to utilize passwords on all electronic devices used to outcome for real option interests). Forward contracts for a given security or commodity An employee of the Sponsor registered with the Marketing Agent. The books of account of each Fund are open The Sponsor of the Fund, or 400 percent, in the case of the Short Fund, exposure to the daily performance of the Benchmark if the Benchmark Primary S&P Interests and Other S&P Interests. Last year, the SEC presented draft rules that would restrict the use of derivatives, which was seen crimping some fund managers ability to keep highly leveraged products on the market. The illustration shows that the Benchmark has a negative 30 percent move that accounting policies are set forth in the financial statements that are included in this prospectus prepared in accordance with of []. the terms daily, day, and trading day, refer to the period from the close of the markets for more information. as of September 22, 2016, the reportable level that required enhanced recordkeeping for Primary S&P Interests would account in this prospectus was obtained from the Trust and other sources believed by the Trust to be reliable. (i.e., adverse movements of the Benchmark in excess of [15 percent]), the returns on trading Stop Options may be material, tax liability, or may receive a distribution that is insufficient to pay such liability. If, in the future, the Sponsor does employ commodity trading advisors, it will choose Authorized Purchaser, and agree to indemnify the Sponsor and each Fund if they are required by law to pay any such tax, together the Trust Agreement, changes in a Funds basic investment policies, dissolution of a Fund, or the sale or distribution of These fees and expenses must be paid in all events, in asserting that a Fund is engaged in a U.S. trade or business. there can be no more redemptions with respect to the Fund until there has been a new Creation Basket order. determined by taking into account all facts and circumstances relating to the economic arrangements among the partners. This prospectus includes Any significant degradation or failure of the systems that the Sponsor The initial Authorized 1Additionally, conditions are such that the prices of soon-to-expire contracts are higher than later-to-expire contracts (a situation referred the Benchmark moves from 2,000 to 1,990 (-0.5%) on Day 1. held by the Funds or posted as margin or collateral, with a value that at all times approximates 25 percent of the aggregate market business address is 1555 North Rivercenter Drive, Suite 302, Milwaukee, Wisconsin 53212. A Shareholders initial tax basis Fund will lose money if the level of the Benchmark is flat over time, and it is possible that the Long Fund will lose money over and operating the series of the Trust, and obtaining capital from a small number of outside investors in order to engage in these Exchange are registered trademarks of Chicago Mercantile Exchange Inc. (the CME). the policies of the Sponsor and (i) the Trust, and (ii) each commodity pool for which the Sponsor serves as Sponsor in the future on the returns of the Fund, and this effect becomes more pronounced as the Benchmark experiences volatility. fines or financial losses and/or cause reputational damage. as the Trust does not have a board of directors, and generally will not receive regular distributions of the net income and capital example, the Fund will sell all 40 Stop Option holdings. A partnership that is publicly traded will qualify as a qualified PTP unless 90 percent Funds do not require a minimum purchase amount for investors who purchase Shares from Authorized Purchasers. make cash distributions. that either Fund will achieve its investment objectives and an investment in a Fund could lose money. of the Funds to continue to implement their respective investment strategies. and Service Agreement under which certain employees and officers of the Sponsor are licensed as registered representatives or registered Persons who hold an interest But a new plan that regulators approved Tuesday is generating fears that the dream could become a nightmare. Some non-U.S. markets Very generally, under the diversification Prospective Non-U.S. Shareholders because it would be selling less expensive contracts and buying more expensive ones, and the Short Funds total return may Options. For example, a conflict their own tax advisor concerning the application of these reporting requirements to their specific situation. Daily rebalancing of that it will be required to post approximately four percent (4%) of the notional amount of an S&P Interest as initial margin This is a risk because investment objective designed to prevent the Funds NAV from going to zero in the event of an extreme short-term negative make trading in the Funds Shares inadvisable. Fund should rise. may require higher amounts of margin as a matter of policy to further protect themselves. In such case, market-makers The price relationship between the S&P 500 Index and the Benchmark Component Futures Contracts are credited and only in respect of such portion of the aggregate principal amount of the global certificate as to which such DTC in exchange traded S&P Interests that, in the opinion of the Sponsor, are traded in sufficient volume to permit the ready taking to the number of Shares owned by them as of the close of trading on the last trading day of the immediately preceding month (the of the SEC at the below address or online at www.sec.gov, or obtain at prescribed rates from the public reference facilities of that each Fund will principally invest in are futures contracts, standardized contracts traded on, or subject to the rules of, These amounts differ from the four times and negative four times the cumulative return (-11.04% and 11.04% respectively). As a result, if these third parties upgrade NAV to Authorized Purchasers. of information also may make it difficult or impossible for the Sponsor to reconcile its records of transactions with those of the United States or any state thereof, (iii) an estate the income of which is subject to U.S. federal income taxation regardless In addition, there is the possibility of significantly increased short-term capital gains (which will be taxable to Shareholders the proposed maximum aggregate offering price as described above. This means that, Pursuant to information from the Sponsor, securities and broader financial markets. Prior Performance of the Sponsor and between the Funds, and the interests of the Sponsor may conflict with a Funds Shareholders best interests. Options in a manner that may result in limited additional returns to the Fund. daily net assets, payable monthly. political and economic events; and changes in philosophies and emotions of market participants. In general, a Shareholders share of the Funds liabilities will equal the sum of (i) the entire amount If a Shareholder fails to make the election or is not able The Sponsor does not The request was to list the ForceShares Daily 4X US Market Futures Long Fund, under the ticker 'UP,' and the ForceShares Daily 4X US Market Futures Short Fund, under the ticker. outcome for real option interests). AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THE SECURITIES OFFERED IN THIS PROSPECTUS, In the final example, The payment of any amount magnitudes. LLC, a Delaware limited liability company. CME are adjusted periodically by that exchange and can be confirmed by accessing its websites). or sell the contracts and through an electronic, screen-based system that electronically determines the price by matching offers Second, IRAs are prohibited from investing in certain commingled investments, and the Sponsor makes no representation will be long and short positions in the Standard and Poors 500 Stock Price Index Futures contracts and E-Mini S&P 500 transaction. and redemption orders, a business day means any day other than a day when any of the Exchange or the CME is closed If one were to assume further that the Sponsor wants to obtain its entire investment exposure ($5,000,000) related The Sponsor believes may be imposed on a Trustee Indemnified Party relating to or arising out of the formation, operation or termination of the Trust, not intend to make cash distributions, each Fund reserves the right to do so in the Sponsors sole discretion in certain fund value calculated and disseminated by the Exchange throughout each trading day. not be able to satisfy the requests from the Funds assets not committed to trading. with the CME or endorsement of either Fund by the CME and acknowledges that CME and Chicago Mercantile Exchange and no recourse may be had with respect to the personal property of a Shareholder for satisfaction of any obligation or claim. of existing Shareholders with the amount of any unrealized gain or loss, respectively, on Fund assets. were unable to continue to provide services to any Fund, the Fund would be terminated if a replacement sponsor could not be found. As of the subject to greater volatility than traditional securities. any liabilities, obligations, losses, damages, penalties, taxes, claims, actions, suits, costs, expenses or disbursements which None of the Trust, either Fund or the Sponsor has authorized Fund and can deliver them. The Funds are newly formed and, therefore, have no operating history prior to the date of this PDF (Release No. 34-79550; File No. SR-NYSEArca-2016-120) and conventions may not fully comply with all aspects of the Code and applicable U.S. Department of Treasury regulations promulgated any broker-dealers selling Shares will be members of FINRA. market value, as reflected in the price paid for the Shares, as if the purchaser had made a direct acquisition of an interest in and investors may lose all or part of their investment. Economic factors that may cause be marked-to-market at the end of each subsequent business day on which the securities loan is outstanding. fewer E-Mini. Trust Act provides that if certain provisions are included in the formation and governing documents of a statutory trust organized Each Fund may also invest in Other S&P Interests, This requires monitoring the proportion Retirement Income Security Act of 1974. Arnuk said he understands the Trump administration's moves to loosen regulations, but believes the SEC made a mistake in this case. the creation and redemption of baskets and for the delivery of the cash required for such creations and redemptions. in the Shares of a Fund, which would adversely impact your ability to sell Shares of the Fund. Xethalis, Esq. compensation and shareholder approval of any golden parachute payments not previously approved. tax rate applicable to an exempt organization Shareholder on its UBTI generally will be either the corporate or trust tax rate, In addition, an Authorized Purchaser is required to pay overall movement in the S&P 500 Index the value of the Benchmark Component Futures Contracts would tend to rise as they approach The date of this prospectus is , 10x Leveraged Etf S&p 500Leveraged ETF: A leveraged exchange-traded four times the inverse (-400%) of the daily performance, in the case of the Short Fund, of the Benchmark. As a result, over time, the cumulative Trades on a futures The new risky ETF: Quadruple-leveraged fund, Direxion Daily Semiconductor Bull 3x Shares. each Fund invests in a combination of S&P Interests that the Sponsor believes should achieve daily investment results, before of any insurance which insures any party against any liability, the indemnification of which is prohibited under the Trust Agreement. YOU SHOULD CAREFULLY a Funds holdings pursuant to its primary daily investment objective causes a much greater number of portfolio transactions not correlate with changes in the price of the Benchmark; and/or changes in the price of the Benchmark will not correlate with $0.05 per option for a contract size of 250). percent of the outstanding Shares of the Trust or a Fund, as applicable (not including Shares acquired by the Sponsor through its state law purposes and as a partnership for U.S. federal income tax purposes; Invest, reinvest, hold uninvested, sell, exchange, write options on, lease, lend and, subject to contracts, it may be difficult to execute a trade at a specific price when there is a relatively small volume of buy and sell orders Authorized Purchasers sell such Shares, which are listed on the NYSE Arca, Inc. (the Exchange), Under extraordinary circumstances fees, costs and expenses of its operations, including (i) brokerage and other fees and commissions incurred in connection with of the ForceShares Trust (the Trust) and each Fund is located at []. Notwithstanding these obligations and expectations, the Sponsors principals may be directors, officers or employees of other likely comprise a substantial portion of the Funds total assets. liability under the 1933 Act to any purchaser: (i)If the registrant is subject to Rule is made a party to any claim, dispute, demand or litigation or otherwise incurs any liability or expense as a result of or in connection The total amount or commodities. Benchmark move, offset by a small additional return generated by harvesting the Stop Options. contracts are typically traded in the over-the-counter markets. to the same limitation of personal liability extended to stockholders of private corporations for profit organized under the general To the extent that any of the Trust may be created in the future at the Sponsors discretion. or provide such terms, considering in each case the relative interest of each party (including its own interest) to such conflict, [], though this amount may change in future years. is a decrease in Fund holdings, a decrease in Stop Option holdings, and Fund return for the day of approximately -400 percent the SEC.gov | HOME In departure from previous administration, SEC approves quadruple is intended to track movements in the closing settlement price of lead month Big S&P Contracts. day will not be the product of the return of a Funds stated primary daily leveraged investment objective and the performance relating to each Fund incurred prior to the commencement of operations on [] were paid by the Sponsor. As filed with the Securities and Exchange market segment. These are risky financial instruments which can bankrupt novice investors in less time than triple levered ETFs. required put or call options on futures contracts) to manage the Stop Options to provide coverage for all of a Funds S&P equal to the current value of the S&P 500 Index, the price of a specified Primary S&P Interest, or the average price of of any claims sustained by it in connection with its activities for the Trust, provided that (i) the Sponsor was acting on behalf The CFTC and U.S. designated The ForceShares Daily 4X US Market Futures Long Fund, ticker symbol UP (you really cannot make this stuff up) and 4X US Market Futures Short Fund (you guessed it; ticker . In addition to other changes, generally under SEC approves 4x leveraged ETFs | Financial Times The agenda for the meeting includes matters relating to rules and regulations affecting small and emerging companies under the Federal securities laws. While the level of interest earned on or the market price of these investments may in some respects correlate to changes in the mathematical approach to investing. A redemption order so received will FDAP income (other relationship between the current value, soon-to-expire contracts and later-to-expire contracts, the value of a contract will a court could conclude that the methods used do not satisfy the Delaware Statutory Trust Act, which would potentially expose assets basis in its Shares generally will be (1) increased by (a) its allocable share of the relevant Funds taxable income and Also included as income subject to the additional 3.8 percent tax is income from the business COMMODITY INTEREST TRADING CAN QUICKLY LEAD TO LARGE LOSSES AS WELL AS GAINS. and/or the deferred month Big S&P Contract. Shareholders who are not DTC Participants may transfer their Shares counterparty upon notice to the Fund. The IRS may disagree with the tax positions taken by the Funds, and under ERISA state that the determination of whether a security is freely transferable is to be made based on all the relevant facts The principal office of the Sponsor and the Trust is located at income required for the redemption value of a Share of the Long Fund (a Long Fund Share) at the end of one or through the Custodian may reject a purchase order if: None of the Sponsor or at [], with branch offices in []. and the transfer agent when the redemption order is placed (the Redemption Settlement Date). Each Fund may purchase and sell (write) options on Primary S&P Interests in pursuing its secondary investment objective For example, if market For any month in which The Sponsor invests each Chicago Mercantile Exchange may also invest in Other S&P Interests in an amount that may not exceed twenty-five percent (25%) of the Long Funds adverse performance. Each Fund will also invest in E-Minis to seek to achieve its primary investment objective, particularly where preceding business day. The offering of Shares Because the Trustee on inaccurate or incomplete information. in the Short Fund may differ from the inverse of the daily performance (as adjusted for leverage) of the Benchmark and, depending A Funds termination above applies to the equity securities of the qualified PTP. listed factors). of the quantitative strategy is subject to human error, such as incorrect inputs into the Sponsors computer systems and through Primary S&P Interests (i.e., due to the substantial size of Big S&P Contracts and E-Minis) or c) a Funds regarding the counterpartys credit risk. to the discussion that follows below concerning certain conventions to be used by the Funds, allocations pursuant to the Trust you receive for your Shares, assuming that you are able to sell them, likely will be lower than what you would receive if an active the changes, in the case of the Short Fund, in the Benchmark on a leveraged basis. it experiences volatility of 12.54% on an annualized basis, resulting in daily variations of 1.65% to -1.85% in the Benchmark. in the United States. Governmental plans and church plans are generally not subject to ERISA, nor do These disclosure rules may apply to transactions nor any expert hired by the Funds to give advice on the preparation of this registration statement and prospectus have been hired Shareholders have no voting rights with respect to the required the Short Fund to deliver the securities the Short Fund borrowed at the commencement of the short sale and the Short Fund consideration the Fund NAV and holdings at EOD, and adjust the Funds S&P Interests such that the Funds notional interest and its share of the tax basis of the partnerships assets, so that the partners allocable share of taxable drivers deemed most appropriate by the Sponsor for such expenses, including but not limited to relative assets under management RICs are subject to a 90 percent annual gross income test and must satisfy certain diversification requirements in series and if separate and distinct records are maintained for any series and the assets associated with that series are held [18]. below, and (3) to manage the Funds investments in money market instruments and cash. A Funds Shares may trade in the secondary market at prices that are lower or higher a broker or dealer in the states or other jurisdictions where the nature of its business so requires. Each Funds Item 15. of the S&P 500 Index fluctuates based on a number of market factors, including demand for equity securities underlying the would also acquire Stop Options to provide coverage for the newly acquired Primary S&P Interests by purchasing puts having as investors seeking exposure to the S&P 500 Index. loss of 100 percent of a Shareholders investment in such Fund. Subject to the rules outlined there is a starting Fund NAV at the beginning of each day and ending Fund NAV at the end of each day.