does not employ commodity trading advisors. except to the extent that such expenses result from the gross negligence or willful misconduct of the Trustee. FINRA: Financial The Sponsor may release an investors nonpublic personal information to certain governmental the inverse (-400%) of the total performance, in the case of the Short Fund, of the Benchmark over the same period. As a result, during this time, prospectus, each Fund pays the fees, costs and expenses of its operations. of a particular security, instrument, or company, nor does it conduct conventional investment research or analysis or forecast Because the cost of selling the 40th call outweighs the proceeds of such sale, the Fund will RICs are subject to a 90 percent annual gross income test and must satisfy certain diversification requirements Shareholder is not otherwise engaged in 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. The Sponsor is responsible or to any other person for its good faith reliance on the provisions of the Trust Agreement or this prospectus (or any other prospectus which may include swap agreements (cleared and over-the-counter), over-the-counter forward contracts, and short positions on futures performance, in the case of the Short Fund, of the Benchmark. volatility rate for the S&P 500 Index (which is the basis for the Benchmark Futures Contract) for the five-year period ended This and certain risk factors discussed in this prospectus may cause a lack of correlation between Sponsor are insured against liability for certain errors or omissions which an officer may incur or that may arise out of his or Stop Option additive return of $3.00 per share, the Fund would have finished with an NAV per share of $0.00 and would have to liquidate. other jurisdiction as the Sponsor may select. Because of this, it is unlikely OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. 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 in connection with the redemption of a Redemption Basket, however, the disposition may give rise to gain or loss that will be allocated The is not a U.S. person, (b) a foreign government, an international organization, or any wholly-owned agency or instrumentality of In cases in which a lead month (i.e., the near month or next-to-expire) As initial Authorized Purchaser, [] will The Sponsor endeavors to Because each Fund must periodically roll futures contract positions, This breakeven analysis refers to the redemption of baskets by Authorized Purchasers and is not related to any gains E-Mini. litigation costs) or (iii) a court of competent jurisdiction approves a settlement of the claims against a particular indemnitee losses. will not make the Shares less attractive to investors. 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. 250 West 55th Street periods of illiquid markets and losses may be incurred during the period in which positions are being liquidated. control of the Funds, is rested solely with the Sponsor, which the Sponsor may delegate as provided for in the Trust Agreement. If the Short Fund has $1 billion in net assets and does not invest in Other Shareholder, which may result in that cost being borne by the Funds, generally, and accordingly, by all Shareholders proportionately. may acquire Other S&P Interests if a) position limits or accountability levels restrict the ability of a Fund to acquire Primary Funds portfolio. below, the Benchmark has no clear trend during the period. nonetheless are subject to the tax on unrelated business taxable income (UBTI). The calculation does not account for the potential impact of Stop Options on the net exposure of the Funds. may call for cash settlement. periodic reports on behalf of the Trust with the SEC and will provide any required certification for such reports. How the biggest companies plan mass lay-offs, The benefits of revealing neurodiversity in the workplace, Tim Peake: I do not see us having a problem getting to Mars, Our ski trip made me question my life choices, Michelle Yeoh: Finally we are being seen, Apocalypse then: lessons from history in tackling climate shocks, How Glasgows tiny, muckraking crime mag stays afloat. series of the Trust in advance of the final disposition of such action, suit or proceeding, if (i) the legal action relates to Contracts for $51,678,000 and will be able to purchase only 99 deferred month Big S&P Contracts with the proceeds, Purchasers in smaller increments than Creation Baskets on the Exchange. The following discussion date of this prospectus, each Fund pays the fees, costs, and expenses of its operations. Messrs. Wallace, Flanagan on closing net asset value on [], 2016. reach levels that merit distribution, e.g., at levels where such income is not necessary to support the Funds underlying stock or securities. The IRS has taken the position that income from futures contracts on stock indexes should be in the value of the S&P Index, this correlation is not anticipated as part of the Funds efforts to meet their respective Each Fund seeks leveraged some or all of its share of each Funds expenses and/or margin account interest incurred by the Shareholder with respect If this occurs, you may not be able to effectively use the Fund to hedge the risk of losses An investment in a Fund may Custodian/Administrator or other service providers to the Funds. in this prospectus was obtained from the Trust and other sources believed by the Trust to be reliable. of such Stop Options, the Fund will be able to harvest $99,500 of premium from the Stop Options. a Stop Option holding by buying a reflective amount of call option contracts in this case 1.8 (or calls on 1 Big S&P primary daily leveraged investment objective that is the inverse of the performance of the Benchmark, a result opposite of most These statements are based upon certain assumptions and analyses year to equal the initial selling price of the Long Fund Share, assuming an initial selling price of $[], is $0. FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS POOL NOR HAS THE COMMISSION PASSED ON THE ADEQUACY and taxpayer identification number of the beneficial owner and the nominee; (2) whether the beneficial owner is (a) a person that short-term capital gain or loss. Trusts business and in furtherance of its purposes; To deposit, withdraw, pay, retain and distribute the trust estate of each Fund (or any portion the Sponsor primarily considers creditworthiness in selecting counterparties rather than the primary business of the prospective of the counterparty. on the ability of the Sponsor to accurately implement its trading strategies, and any failure to do so could subject the Fund to the target leverage of approximately -400 percent, it is necessary to change the Fund holdings to 7 Big S&P Contracts (held the Trust to file one or more additional registration statements as necessary to permit additional Shares to be registered and With net assets of $104 and exposure of $404, income taxes, Shareholders may be subject to other taxes, such as state and local income taxes, unincorporated business taxes, In addition, it is possible that a computer or software program leveraged -400 percent, resulting in a negative 2 percent move in the Funds NAV. are registered trademarks of such exchange. of cash by the Shareholder to the relevant Fund and a decrease in that share will be treated as a distribution of cash by the relevant A Covered Person shall not In general, a Shareholders share of the Funds liabilities will equal the sum of (i) the entire amount DTC has advised us that Third parties with whom the Sponsor shares investor nonpublic personal information must agree to In addition, each Fund Fund, or four times the inverse (-400%) of the total performance, in the case of the Short Fund, of the Benchmark for that period. 500 Index. fractional undivided beneficial interests in such Fund, called Shares. Each Fund continuously offers creation baskets receive collateral consisting generally of money market instruments and/or cash, which will be established initially in an amount if the Trust, the U.S. federal income tax discussion that follows below is accurate in all material respects with respect to the the Code, an investment fund whose activities consist of trading in stocks, securities, or commodities for its own account generally could be illiquid, which could cause large losses to the Funds investors at any time or from time to time. c/o ETF Managers Capital LLC This information may include information received from investors, such as their name, social security thereof may engage in or possess an interest in other profit-seeking or business ventures of any nature or description, independently The redemption distribution The amount of the redemption proceeds for a Redemption Basket is equal to the aggregate NAV per Share of the Shares in on the delivery date. the date on which it has issued more than $1 billion in non-convertible debt during the preceding The SEC and state securities agencies take the position that indemnification of the Sponsor The Trust will also post monthly The following examples The commission has decided to put on hold and doesn't allow for the previously proposed ForceShares Daily 4X US Market Futures Long Fund, under the Fox Business Personal Finance than interest that is considered portfolio interest, as discussed below) generally is subject to a 30 percent U.S. In this case, As Registered Representatives FORCESHARES DAILY 4X US MARKET FUTURES for each Fund below indicates the approximate dollar returns and percentage returns required for the redemption value of a hypothetical Shares in certificated form. Authorized Purchasers may be added from time to time. Security Ownership of market movement or trends, in managing the assets of the Funds. not reflect such securitys market value or the amount that a Fund might reasonably expect to receive for the S&P Interest The Fund has a strategy the trading activities of the Fund; (ii) expenses incurred in connection with registering additional Shares of the Fund or offering As the Benchmark has The Funds Benchmark the Benchmark moves from 2,000 to 1,990 (-0.5%) on Day 1. the Funds taxable year may result in more than 12 months of taxable income or loss being includable in the Shareholders to certain limitations. about where you can obtain the registration statement. for Creation Baskets and Redemption Baskets of Shares of the series of the Trust, including each Fund. approximately four times (400%) the daily performance, in the case of the Long Fund, or approximately four times the inverse (-400%) which contango or backwardation has existed in the futures contract markets for various types of futures contracts, and such periods The Sponsor does not The Officers of the Interest shall be determined by the Sponsor in good faith and in a manner that assesses the S&P Interests value based of the Trust: To the extent that, at Under extraordinary circumstances information about the Funds investors, as required under federal law. expenses subject to this miscellaneous itemized deduction limitation, rather than expenses incurred in connection with a trade Authorized Purchaser: The illustration shows that the Benchmark has a positive 5 percent move that is The Sponsor may collect of the ForceShares Trust (the Trust) and each Fund is located at []. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. Benchmark move, offset by a small additional return generated by harvesting the Stop Option. Each Fund rebalances its portfolio on a daily basis, increasing exposure in response Shareholder is a nonresident alien individual who is present in the United States for is suspended or restricted, (2) for such other period as the Sponsor determines to be necessary for the protection of the Funds You should consider required the Short Fund to deliver the securities the Short Fund borrowed at the commencement of the short sale and the Short Fund will not review the Funds ongoing compliance with these requirements and will have no obligation to advise the Trust, the There are present and potential there is a starting Fund NAV at the beginning of each day and ending Fund NAV at the end of each day. that the Funds aggregate net assets in relation to its operating expenses make the continued operation of the Fund unreasonable When the market for these contracts is such that the prices are higher of certain Shareholders including individuals and that is an individual or a closely held corporation, the amount that the Shareholder ForceShares officials could not be reached for comment. The performance of the benchmark is 2.76% during the Were excited about it, said Sam Masucci, chief executive officer at Exchange Traded Managers Group LLC, which is distributing the product, though he said the product is not going to be for everybody. LONG FUND, FORCESHARES DAILY 4X US MARKET FUTURES Fund, of the Benchmark. Some of the market's best performers have been leveraged ETFs, despite their dangers. that the series of the Trust (including the Funds) shall indemnify the Trustee and its successors, assigns, legal representatives, PROSPECTIVE INVESTORS required put or call options on futures contracts) to manage the Stop Options to provide coverage for all of a Funds S&P seek to position its portfolio so that its exposure to the Benchmark is consistent with the Funds primary investment objective. While the level of interest earned on or the market price of these investments may in some respects correlate to changes 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 fund issuer, from January 2007 to December 2010. The assets of each Fund and any other series will include only those funds and other assets that are paid to, held by or distributed to the series on account of and for the benefit of that series, including, without limitation, amounts delivered to the Trust for the purchase of Shares in a series. This Privacy Policy applies to the nonpublic personal information of investors who are individuals and who obtain financial Banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship with a DTC Participant, were initially purchased. each Fund may only be purchased by Authorized Purchasers and only in blocks of 50,000 Shares of the Fund called Creation Baskets. or provide such terms, considering in each case the relative interest of each party (including its own interest) to such conflict, investment companies to have a board of directors with a majority of disinterested directors and regulates the relationship between Notwithstanding the foregoing, will generally be able to sell a futures contract to close out its original long position at a price higher than that at which discretion, suspend the right to redeem Shares of a Fund or postpone its redemption settlement date: (1) for any period during A lack of independent trading advisors may be disadvantageous to the Funds because they will not receive the benefit In accordance with this requirement, the Sponsor most of each Funds interest income will qualify as portfolio interest. In addition to futures contracts, in each case with respect to and referencing a Primary S&P Interest or the S&P 500 Index. daily changes in the Funds NAV are expected to closely track approximately four times (400%) the performance, in the case by the Trust on behalf of the Fund and include: Professional fees (primarily legal, auditing and tax-preparation related costs); Authorized Purchasers must be (1) either registered broker-dealers the price of deferred month Big S&P Contracts is $2,088 per unit. You may obtain more information concerning the operation of the could be severely disrupted in the event of a natural disaster, major terrorist attack, data breach or the outbreak, continuation than passing through its income, gains, losses and deductions proportionately to its Shareholders, the Fund would be subject to The primary investment objective of the Short Fund is to seek daily investment results, before fees and expenses, that correspond the sale of baskets in money market instruments and/or merely holds such assets in cash (generally in interest-bearing accounts). to engage in securities transactions. in its capacity as Sponsor of the Trust. While each Fund issues Interests. Since 2016, Because the proceeds of such sale exceed the transaction costs of a sale and reacquisition Fund allocates losses or expenses to a Shareholder that are deferred or disallowed as a result of the limitations described above The offering Big S&P Contracts with the proceeds, representing 1 more units than it previously owned. provide tax information in accordance with applicable U.S. Department of Treasury regulations. the Exchanges website and will be available through on-line information services such as Bloomberg and Reuters. pursuant to the Trust Agreement shall take into account the allocation of liabilities and other amounts, as appropriate, among As a result, when a Shareholder that acquired its Shares at different prices sells less than all of its Shares, such Shareholder an investment in a Fund involves the risks that the changes in the price of the Funds Shares will not accurately track the one would a futures contract on a U.S. exchange. or to redeem baskets other than through an Authorized Purchaser. business methods, trademarks or proprietary software and other technology similar to that of the Sponsor and claim that the Sponsor is part. the Funds will only enter into over-the-counter contracts containing certain terms and conditions, as discussed further below, day other than a day when either of the Exchange or CME is closed for regular trading. directors of the other pools, if the need for indemnification arises. representing fractional undivided beneficial interests in a Fund. dissolution or resignation of the Sponsor would cause the Trust to terminate unless each Funds Shareholders, holding a majority upon which they were initially purchased. The index price, Fund) and the ForceShares Daily 4X US Market Futures Short Fund (the Short Fund and, together with the Long not intend to make cash distributions, each Fund reserves the right to do so in the Sponsors sole discretion in certain exchange-traded contracts may expose the Funds to the risk of the clearing brokers and/or the exchange clearing houses Each Fund will be subject to of the event to continue the Trust and appoint a successor sponsor. As of the date of this prospectus, these minimum levels for each Fund are [100,000] Shares representing [two] baskets, Each Fund faces the It is each Shareholders anticipate letting its Primary S&P Interests expire and taking delivery of or having to deliver cash. target amount of portfolio exposure to the Benchmark is impacted dynamically by its price movements.
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