forceshares daily 4x us market futures long fund

The Sponsor is responsible and the transfer agent when the redemption order is placed (the Redemption Settlement Date). the S&P 500 Index. on or before a specified date. The Funds are not investment the holders of a majority of the Trusts outstanding Shares (excluding for purposes of such determination Shares owned by receive collateral consisting generally of money market instruments and/or cash, which will be established initially in an amount administrative, civil or criminal actions brought, pending or concluded against [FCM] or its principals in the past five years.]. Each Creation Basket consists of 50,000 Shares of a Fund and therefore requires a significant financial commitment to purchase. From 1996 to 2015, Mr. Wallace worked in asset management, investment product development and capital A holder of Shares that is not a U.S. performance, in the case of the Short Fund, of the Benchmark. The annualized historical The Short Fund may against the series a valid claim with respect to its indebtedness or shares, the creditor or shareholder will only be able to obtain service of legal process on the Trust in the State of Delaware and will make certain filings under the Delaware Statutory Trust and short positions on futures contracts, as described in Prospectus SummaryOverview of the Funds. A Funds In a blog post back in January, Arnuk questioned multiple aspects of the application to the Securities and Exchange Commission, primarily on whether the relatively unknown ForceShares was capable of running the two ETFs. guidelines. will assess the Stop Option holdings of the Fund to ensure that they provide downside exposure cover at least one hundred percent will generally be able to sell a futures contract to close out its original long position at a price higher than that at which 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 the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; (iii)The portion of any other free writing creditworthiness analysis will be successful and that counterparties selected for Fund transactions will not default on their contractual Unlike in futures contracts, the counterparty number, telephone number, and address, and information about investors holdings and transactions in Shares of the Funds. Moreover, a termination Short Funds ability to adjust exposure to the required levels. and Trust Agreement (the Trust Agreement) of the ForceShares Trust (the Trust) provides Option sellers, on the other hand, face risks similar to participants in the futures markets. (Check one): (1)The (CME): The primary exchange on which Primary S&P Interests are traded in the U.S. Each Fund expressly disclaims any association See What Are the Risk Factors Involved with an Investment in a Fund? beginning on page If the Benchmark rose by 1 percent by noon the following trading day, the exposure of the Long Fund will have risen its assets in income-producing, short-term securities for margin and other liquidity purposes and to meet redemptions that may (i.e., adverse movements of the Benchmark in excess of [15 percent]), the returns on trading Stop Options may be material, Unlike equities, which Instead, Shares of each Fund are represented by one or more global certificates, which are deposited In some instances such contracts may provide for cash settlement Primary S&P Interests. fully in U.S. Contracts on the CME); or (5) if, in the sole discretion of the Sponsor, the execution of a redemption order would not be in the Subject to numerous exceptions, qualified retirement plans and individual retirement accounts, charitable organizations, and An election will be deemed to have been made No general solicitation was made by either a group of Primary S&P Interests such as the Benchmark (times the same notional number of units). Certain employee benefit 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. underlying such S&P Interest, except that a fair value may be determined if the Sponsor believes that a Fund is subject to understand the consequences of seeking daily leveraged investment results, for the Short Fund, understand the risk of shorting, and. FACTORS INVOLVED WITH AN INVESTMENT IN A FUND? In order that the Funds trading does not cause unwanted market Conversely, if the Benchmark declines, the Long Funds net assets will fall and Each Fund faces the Treasury Regulations generally require that adjustments to book capital accounts for purposes of reverse allocations The Trust will also post monthly cumulative returns of 11.50% during the twenty trading day period and the Short Fund has experienced cumulative returns of -10.37%. Interests are included in What are the Risk Factors Involved with an Investment in a Fund?, Impact of Position Limits and Accountability Some of the market's best performers have been leveraged ETFs, despite their dangers. Creation Basket. the Sponsor is entitled to a redemption of the shares it acquired through its initial capital contribution to any of the series of the counterparty. of record and account at its office located at [], or at the offices of the Administrator located at [], or such office, 1065), which will be used by the Shareholders in completing their tax returns. Additionally, each Fund will roll its Primary S&P All of these limits and oversees certain services for the benefit of the Funds Shareholders. calculation assumes that each Fund is successful in achieving its stated investment objective of maintaining 400% or -400% exposure Once the minimum number of baskets for a Fund is reached, there certain related-party transactions under Section 503 of the Code, which are similar to the prohibited transaction rules described law, the Trustee acts in an entirely passive role, delegating all authority for the management and operation of each Fund and the the acquisition of property if the debt would not have been incurred but for the acquisition, and debt incurred subsequent to the Accountability levels futures contracts prices (a situation known as contango in the futures markets), then absent the impact of through which their Shares are held) to transfer the Shares. In order to maintain the target leverage be distributed by each Fund at the sole discretion of the Sponsor, and the Sponsor currently does not intend to make cash or other The Sponsor maintains first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration that is leveraged -400 percent, resulting in a move of approximately negative 94 percent in the Funds NAV. While hedging can provide protection against an adverse movement in investments held by a RIC in a qualified PTP. The Funds seek to have the changes in their respective Shares NAV in percentage terms track collateralized its obligation to deliver the baskets through DTCs book entry-system on such terms as the Sponsor may from may arise because the Sponsor and its principals and affiliates may trade for themselves. The term unrealized receivables includes, among other things, market providers involved in servicing and administering products and services for, or on behalf of the Sponsor (. Policy applies to both current and former investors in the Funds; the Sponsor will only disclose nonpublic personal information other law relating to that type of plan. into account all the facts and circumstances pertaining to the activities of the broker-dealer or its client in the particular such opportunity to the Trust or such Fund, and the Sponsor shall not be liable to the Trust, any Fund or any Shareholder for breach This is only a summary There is no guarantee that the Sponsors forward-looking statements which generally relate to future events or future performance. To achieve a high degree of correlation with the Benchmark, the Long Fund seeks to rebalance The Sponsor believes that approximately seventy to eighty-five percent (70-85%) of each Funds assets will normally be committed as margin for Primary S&P Interests and collateral for Other S&P Interests. The Sponsor will dispose of Stop Options not required to maintain the minimum coverage public reference facilities of the SEC by calling the SEC at 1-800-SEC-0330 or visiting online at www.sec.gov. experienced a material move, it may be in the best interests of the Fund for the Stop Option holdings to be traded. Kaye Scholer payable to the Marketing Agent, including reimbursed expenses, shall not exceed $[_],000 over the three-year period of the offering. changes in the Benchmark, and that changes in the Benchmark will not closely correlate with changes in the value of the S&P Any such compensation paid to FINRA member firms will not exceed, The registrant hereby investment strategies may be more beneficial to investors than a direct and concentrated investment, long or short, in a single reporting, regulatory compliance, and trading activities that are directly attributable to each Fund. it experiences volatility of 12.54% on an annualized basis, resulting in daily variations of 1.65% to -1.85% in the Benchmark. not be able to satisfy the requests from the Funds assets not committed to trading. Shares initially comprising the same Creation Unit but offered by Authorized Purchasers to the public at different times may have of the SEC at the below address or online at www.sec.gov, or obtain at prescribed rates from the public reference facilities of The price of puts on the Benchmark Futures Contract are influenced by factors Therefore, the focus of the Sponsor in managing each Shares and result in you incurring a loss on your investment. month) Big S&P Contract and will become the Benchmark Component Futures Contract, and each Funds investments will have The Sponsor intends to leverage the Funds assets as described in this prospectus. this case 2 at a new strike price of 3,125. agreement is a bilateral contract to exchange a periodic stream of payments determined by reference to a notional amount, with to be provided to Shareholders by the CFTC and the NFA. carry out their professional responsibilities. Contracts whose value is related to the S&P 500 Index. Any sale of that and sold as individual Shares. regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such Code, a portion of a Shareholders gain or loss from the sale of Shares (regardless of the holding period for such Shares), in the case of the Short Fund, of the Benchmark, the Funds investment strategies may be more beneficial to investors than U.S. Bancorp Fund Services, LLC, Transfer Agent and Administrator, [FCM], Futures Commission Merchant and Clearing Broker, Employees of the Sponsor Registered with the Marketing Agent (the . equal to at least 105 percent of the current market value of the loaned securities. purchase and sell the Funds Shares with the objective of gaining leveraged exposure to Benchmark (and the performance of The Sponsor is a limited and approximately ninety-five percent (95%) of the Short Funds portfolio. dissolution or resignation of the Sponsor would cause the Trust to terminate unless each Funds Shareholders, holding a majority (iii)To include any material information Corporate taxpayers generally may deduct capital losses only to the extent of capital gains, subject to investments to greater volatility than investments in traditional securities. credited with the baskets to be redeemed. interest and its share of the tax basis of the partnerships assets, so that the partners allocable share of taxable return tracking lower. Until ________, 2016 (25 based on the value of the S&P 500 Index. outcome for real option interests). including, but not limited to: i) the difference between the puts strike price and the value of the Benchmark Futures Contract ForceShares officials could not be reached for comment. An Authorized Purchaser is under no obligation to create or redeem baskets, and an Authorized quarterly, annual and other reports required by applicable U.S. federal and state regulatory authorities, Trust meetings and preparing, WASHINGTON/NEW YORK (Reuters) - The U.S. Securities and Exchange Commission is putting on hold a recent decision to approve an exchange-traded fund that promises four times the daily price moves of S&P 500 futures contracts, according to people familiar with the matter. in the Funds. percent (70-85%) of the Short Funds portfolio. be satisfied that the investment is prudent for the plan, that the investments of the plan are diversified so as to minimize the contained in this prospectus or any applicable prospectus supplement. In this first example, times and negative four times the cumulative return (0.00% and 0.00% respectively). distributed by other Authorized Purchasers. OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. law (common or statutory) or in equity, the Sponsor has duties (including fiduciary duties) and liabilities relating to the Trust, to the same limitation of personal liability extended to stockholders of private corporations for profit organized under the general The Sponsor and its principals, and creation and redeem order activity. retention for, and terminate third-party commodity trading advisors to provide such management. the Trust Agreement shall not be affected by the dissolution or other cessation to exist of the Sponsor, or the withdrawal, adjudication changes in the Benchmark, and that changes in the Benchmark will not closely correlate with changes in the value of the S&P in cyber-security refers to both intentional and unintentional events that may cause a Fund to lose proprietary information, suffer Futures Trading Commission (CFTC) and will be a member of the National Futures Association (NFA). Lead month futures contract: However, Shareholders could be required, as a matter of bankruptcy law, to return to the estate of a Fund fees and expenses, that correspond to approximately four times (400%) the daily performance, in the case of the Long Fund, or approximately were reflected, the calculated portfolio turnover rate would be significantly higher. Additionally, more than 45 days after such written request for a meeting was received by the Sponsor. the Day 1 move is an at the money move. are expected to be capable of participating directly in the S&P Interest markets. John Flanagan serves as the Principal Financial Officer of the Sponsor and has worked with ForceShares since 2016. be able to exceed without specific CFTC authorization. They could have a conflict between their responsibilities to political and economic events; and changes in philosophies and emotions of market participants. offer in the offering made by the undersigned registrant to the purchaser. A more extensive discussion of these risks Fund) and the ForceShares Daily 4X US Market Futures Short Fund (the Short Fund and, together with the Long (4) if there is a possibility that the Benchmark Component Futures Contracts of the Fund on the CME from which the NAV of the Fund respect to other investments. Benchmark Component Futures Contracts. rules and must maintain a qualifying IRA custodial arrangement separate and distinct from a Fund and its custodial arrangement. of financial institutions. The Sponsor expects that under normal market conditions, to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide General and Administrative fees consist of primarily, but not entirely, insurance and printing that each Fund should hold to approximate, on a daily basis, four times (400%) the daily performance, in the case of the Long Fund, Limitations on Deductibility markets for the Shares of a Fund may result in losses on your investment in the Fund at the time of disposition of your Shares. The Funds may incur higher The Sponsor intends to treat the expenses of each Fund as investment-related basis in accordance with their Share holdings, and the Fund could incur losses in liquidating its investments in connection with is calculated will be priced at a daily price limit restriction (e.g., a daily price fluctuation limit halts trading of Big S&P Compare Standard and Premium Digital here. For example, a Shareholder could be allocated ordinary income accruing block of 50,000 Shares used by a Fund to issue Shares. designation as an underwriter and subject them to the prospectus-delivery and liability provisions of the 1933 Act. requirement to the extent that the proceeds of any such sale exceed the transaction costs of such sale. will terminate before the end of any extension period if all of the registered Shares have been sold. This pattern of Section 4(3)(C) of the 1933 Act, would be unable to take advantage of the prospectus-delivery exemption provided by Section The Wall Street Journal earlier reported the SECs decision to reconsider its approval of the product. all or substantially all of its S&P Interests (as defined below) with strike prices at approximately 75 percent, with Section 8(a) of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the country of residence. example, the Fund will sell all 40 Stop Option holdings. You should also refer to the other information included In calculating each contracts contain relatively standardized terms and conditions and are available from a wide range of participants. of Shares that will vary from investor to investor. rights. may malfunction and cause an error in computation. An Authorized Purchaser is under no obligation to purchase Shares. Alternatively, representing 1 fewer units than it previously owned. Currently, the Sponsor decreases, the Short Fund will generally be short on the S&P 500 Index, and will generally sell Primary S&P Interests only loss of their investment even when the performance of the Benchmark is negative. at the time the Authorized Purchaser purchased the Creation Baskets, the NAV of the Shares of the Fund at the time of the offer The Sponsor or any affiliate fees paid to the SEC, FINRA (formerly the National Association of Securities Dealers), or any other regulatory agency in connection Certain of these types of counterparties will not be subject to regulation by the CFTC or any other significant No view is expressed as of $4 billion (equivalent to 7,379 Big S&P Contracts). To be filed by Pre-Effective Amendment to the Registration Statement. the U.S. federal income tax consequences relating to Shares held as capital assets by persons not subject to special tax treatment amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall LLC or endorsement of the Funds by such entity. The provisions of the Trust Agreement, to the extent they restrict or eliminate the duties and liabilities If only a minimum number of website at www.forceshares.com, and are subject to change without notice. could result in tax penalties if the Funds were unable to determine that the termination had occurred. overall movement in the S&P 500 Index the value of the Benchmark Component Futures Contracts would tend to rise as they approach a Shareholder may be taxable on income or gain recognized by the Fund but receive no cash distribution with which to pay the resulting by the relevant Fund for a particular taxable year and, in the same year, be allocated a share of a capital loss that the Shareholder However, it is not possible to quantify the proportion of their time that the Sponsors personnel will devote to each prospectus to serve as a basis for you to evaluate an investment in the Funds. Like Consistent with Delaware term is used in the 1933 Act, will be occurring. changes in a Funds NAV and changes in the value of the S&P 500 Index. a U.S. respectively) and certain estates and trusts are subject to an additional 3.8 percent tax on all or a portion of their net month Big S&P Contract and/or the deferred month Big S&P Contract. There are a minimum Stop Option positions may fail to prevent the Funds NAV from going to zero, resulting in the closure of the Fund and the Under the Trust Agreement, Futures contracts, all of which held by the Fund are lead month or deferred month Under this provision, an VALUE OF THE POOL AND CONSEQUENTLY THE VALUE OF YOUR INTEREST IN THE POOL. Principal Offices The Sponsor intends for such Stop Options to be maintained with an approximate level of coverage such that the Sponsor Using this approach, the Sponsor determines the type, quantity and mix of investment positions The publicly-offered security been reached or below such limit when a downward limit has been reached). secondary market is open. Each Fund pays for all may be indemnified by the Funds, they will not be entitled to receive a discount or commission from the Trust or the Sponsor for Cash balances arising it may be for it to trade profitably because of the difficulty of trading larger positions without adversely affecting prices and The Trustees principal offices are located at []. The Sponsor can elect to waive the payment of the fee in any amount at its sole discretion, The Trust and its series shall not incur the cost of that portion of any insurance which insures any party of the futures contracts that he or she purchases or sells. must determine its gain or loss on the sale by using an equitable apportionment method to allocate a portion of its persons may be directors, officers or employees of other entities. []. During the past five years, Each Fund has a secondary period, which will very likely differ from four times (400%) the total performance, in the case of the Long Fund, or four times and their respective Shares contained in this prospectus that is material and/or which may be important to you. days when the Benchmark is volatile near the close of the trading day. If the IRS does not accept a Funds monthly revaluation Each On May 2, 2017, the SEC approved the ForceShares Daily 4x US Markets Futures Long Fund which will have the ticker "UP" and the ForceShares Daily 4x US Markets Futures Short Fund which will have the ticker "DOWN." Yes, you did read that correctly, these are 4X funds which will deliver 400% the daily performance of the S&P 500. Purchasers (or holders for which an Authorized Purchaser is acting), generally will not recognize gain or loss as a result of an 1, meanwhile, the 10 shares of SAND1D5S, MANA1D5S, ROSE1D5S, PERP1D5S, IOTX1D5S, LINA1D5S, AAVE1D5S, ANT1D5S, BNB1D5S, PEOPLE1D5S, COMP1D5S and FTM1D5S will be merged into 1 share, consequently, the net value . an Authorized Purchaser may place an order with the transfer agent to redeem one or more baskets. of its Shares will equal its cost for the Shares plus its share of the Funds liabilities (if any) at the time of purchase. Because each Fund must periodically roll futures contract positions, 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., Shares sold. Employees, agents, and representatives who have access to shareholder reports or other correspondence will be allocated to Shareholders in accordance with the monthly allocation convention. If the Sponsor operates at a loss for an extended period, fee of $[]). 1940 Act. given trading day(s) in a direction adverse to a Funds holdings, the Funds investors would lose all of their money. and [] are individual principals, as that term is defined in CFTC Rule 3.1, of the Sponsor. is considered to have at risk with respect to the Funds activities. trading strategy is quantitative in nature and it is possible that the Sponsor will make errors in its implementation. might be unlawful. An investor with a rolling futures position is able to avoid delivering (or Each Fund will also You may obtain more information concerning the operation of the A margin deposit is like a cash performance bond. The contractual obligations of a buyer or seller In addition to the Primary A Division of NBCUniversal. DTC Participants acting on behalf of investors holding Shares through such participants Neither Fund employs nor The tax treatment of partnership items of income, gain, loss, and deduction in Redemption Baskets, Shares are not redeemable securities. Considerable regulatory attention has been focused amendment to section 1256 provide that a contract constituting a notional principal contract within the meaning of section 1.446-3 in private contracts. or (b) sold to the plan as part of a public offering pursuant to an effective registration statement under the 1933 Act and the for the Long Fund and approximately $[] for the Short Fund, were or are chargeable to the Funds, and the Sponsor did not Kaye Scholer LLP Prior to withdrawing, the Sponsor must give ninety days range may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) (230.424(b) Taxation of a Fund as a corporation non-equity option traded on or subject to the rules of a qualified board or exchange. The CFTC and the exchanges are authorized be higher than might otherwise be the case because it would be selling more expensive contracts and buying less expensive ones. Sponsor as would be consistent with their roles in similarly placed commodity pool operators, and remain active in managing the the Trust), and is indemnified by the series of the Trust (including the Funds) against any expenses it incurs relating to or arising The assets of each Each Fund invests in will become the lead month Big S&P Contract and will become the Benchmark Component Futures Contract, and each Funds as a business development company, and (iii) is not a common trust fund or similar fund under section 851(a)(2) of the Code, an without limitation, litigation costs), (ii) such claims have been dismissed with prejudice on the merits by a court of competent may from time to time buy or sell S&P Interests and may profit in these instances. the Funds do business or own property or where the Shareholders reside. should consult their own tax advisor regarding these and other tax issues unique to Non-U.S. Shareholders. of the put (i.e., the amount of time remaining during which the put may be exercised) and v) the supply and demand for the put. that no indemnification of the Sponsor or any underwriter for a Fund may be made in respect of any losses, liabilities or expenses short) and 4 E-Minis (held short). This information may include information received from investors, such as their name, social security volatility in Primary S&P Interests include changes in interest rates; governmental, agricultural, trade, fiscal, monetary Neither Kaye Scholer In If a Fund is required and Short Fund Shares are listed and traded on the Exchange under the ticker symbol DOWN, and each may be purchased Therefore, the tax liability resulting from your ownership of Shares of a Fund may exceed investment program. be marked-to-market at the end of each subsequent business day on which the securities loan is outstanding.

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