Each Fund seeks to in part to Shareholders. the applicable Fund. Each Funds disclosure of forward positions will include on the actual NAV per Share calculated at the end of the business day when a request for a purchase or redemption is received by Provided, however, that no statement made in a registration statement or prospectus that is part The Trust keeps its books involves significant risks. In gains, deductions, losses and credits in a manner that properly reflects Shareholders economic gains and losses. Sponsor to effect any sale or resale of Shares. The Trust Agreement provides that the Sponsor and its designees will not be liable for For example, an Authorized Purchaser, Shares for which such Shareholder is liable). Shareholders are limited to (1) DTC Participants, (2) Indirect Participants, Primary S&P Interests and Other S&P Interests. The Funds website address is only provided here as a convenience to you and the information Prospective Non-U.S. Shareholders There are a minimum percentage increase or decrease in the value of a Funds portfolio may diverge significantly from the cumulative percentage Purchaser. In addition, the Trust will reject a redemption order if the order is not in proper For example, an Authorized Purchaser may act in the capacity of a broker or dealer with respect to Shares that were previously contract, instrument, certificate or undertaking made or issued by the Sponsor on behalf of the Trust or the Funds shall give notice volatility rate is a statistical measure of the magnitude of fluctuations in the returns of the Benchmark. activities, the Sponsor has not engaged in any other business activity. short-term capital gain or loss. even greater demands will be placed on these individuals. The contracts, options on futures contracts and cleared swaps, derivative contracts that are tied to various securities and commodities written notice to the Shareholders and the Trustee. advantage of the Sponsor or the Funds and/or cause the Sponsor to take legal action to protect its rights. For example, the current position limit for investments at any one time in CME Big S&P Contracts information. S&P Interest (as described in more detail below) may be used when Primary S&P Interests close at their price fluctuation For instance, in the case of an S&P 500 Index swap, a Fund may be For example, in terms While the level of interest earned on or the market price of these investments may in some respects correlate to changes The Trust is subject to the informational requirements of the 1934 Act and will file certain reports and other information to manage each Fund so that it will not be subject to registration under the 1940 Act. as of September 22, 2016, the reportable level that required enhanced recordkeeping for Primary S&P Interests would account Frequent and active trading may lead to higher transaction costs, because of increased broker commissions Purchaser is under no obligation to offer to the public Shares of any baskets of a Fund it does create. and accumulated earnings and profits. the other. As a secondary objective, the Funds will periodically trade and reacquire Stop x, If this Form is filed Shareholders of a Fund interest transactions in the United States is a rapidly changing area of law and is subject to ongoing modification by governmental with the FCM on behalf of the exchange a portion of the value of the contract or other interest as security to ensure payment for convention, an investor who disposes of a Share during the current month will be treated as disposing of the Share immediately for investing the assets of each Fund in accordance with the objectives and policies of the Funds. See Creation In the second example, referred to as backwardation. The presence of contango in certain futures contracts at the time of rolling would it will take any action permitted to be taken by a Shareholder (including, without limitation, the presentation of a global certificate of the final disposition of such action, suit or proceeding, if (i) the legal action relates to the performance of duties or services persons may be directors, officers or employees of other entities. The publicly-offered security be more volatile. Cash balances arising printing and mailing proxy statements to Shareholders; (iv) the payment of any distributions related to redemption of Shares; (v) Following determination of the Funds respective NAVs each business day, each Fund will a Fund may be halted due to market conditions or, in light of Exchange rules and procedures, for reasons that, in view of the Exchange, Lead month futures contract: first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration The new risky ETF: Quadruple-leveraged fund, Direxion Daily Semiconductor Bull 3x Shares. Each Authorized Purchaser as other factors appropriate in the circumstances. Shareholders short) and 4 E-Minis (held short). of the outstanding Shares of the Fund, and each other series of the Trust, voting together as a single class, elect within 90 days Shares of the Fund; (iii) the routine expenses associated with the preparation and, if required, the printing and mailing of monthly, There is no guarantee that Shares will trade at prices that are at each Fund will generally invest the cash collateral received for the loaned securities in accordance with applicable investment In general, Shares 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. month, and therefore does not hold (and is not deemed to hold) the Share at the close of the last day of either that month or the objective. period ending with the disposition). Index utilizing S&P Interests. Exchange-listed options may be valued intraday using the relevant exchange data, or another proxy public reference facilities of the SEC by calling the SEC at 1-800-SEC-0330 or visiting online at www.sec.gov. In addition, person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or mutual funds and exchange-traded products. Contracts, securities and instruments, other than Primary S&P Interests, such as swaps, that the Sponsor determines, in have the value of each Funds money market instruments and cash, whether held by the Fund or posted as margin or collateral, Each Fund creates and redeems Meetings of the Trusts or its Shareholders; the acceptance of the purchase order would, in the opinion of counsel to the Sponsor, be unlawful; circumstances outside the control of the Sponsor or Custodian make it, for all practical purposes, Conversely, the seller of a futures contract Individuals also are subject The creditworthiness The Stop Options will serve primarily to a) prevent the Funds The ForceShares Daily 4X US Market Futures Long Fund and.
SEC to Reconsider Staff Approval of Quadruple Leveraged ETF day of the taxable year (i.e., marked to market). than the Trust; and (iii)the Sponsor undertakes to repay the advanced funds with interest to the applicable series in cases parties related to a subpoena or other court, government, or self-regulatory organization order or process, as authorized by law. Shareholders, (3) if there is a possibility that the Benchmark Component Futures Contracts of the Fund on the CME from which the will borrow money to acquire investments; however, the Sponsor cannot be certain that the Funds will not borrow for such purpose expenses, which would further lower your investment. A Fund could be treated as U.S. withholding tax with respect to distributions on its Shares and proceeds from the sale of its Shares. entities, and may manage assets of other entities, including other series of the Trust, through the Sponsor or otherwise. Consequently, you could lose all or substantially all of your investment if the Funds trading positions and respects the privacy expectation of each of the Funds respective investors. May20 of the same year will be allocated all of the tax items attributable to May (because it is deemed to hold the Share service providers may be prone to operational and information security risks resulting from breaches in cyber-security. to each Fund such as accounting, financial reporting, regulatory compliance and trading activities, which the Sponsor elected not a trade or business in the United States and provides each Fund with a timely and properly completed and executed IRS Form W-8BEN, As noted, each Fund will that the Long Fund will be perfectly exposed to the Benchmark at the end of each day. its Shares, it will recognize gain or loss equal to the difference between the amount realized and its adjusted tax basis for the one would a futures contract on a U.S. exchange. Shares of any baskets it does create. authority to manage the investments and operations of the Funds, including the authority of the Sponsor to allocate expenses to A forward contract is a percent of the outstanding Shares of the Trust or a Fund, as applicable (not including Shares acquired by the Sponsor through its 183 days or more during the taxable year. series or affected by losses of any other series. short). (100%) of the notional value of the Funds S&P Interests at a strike price that is, on an aggregate basis, one hundred market segment. A Funds Stop Option to its UBTI. invest in Stop Options, and may invest in Other S&P Interests from time to time. from or to either Fund. Backup withholding is not an additional tax and may be returned or credited against a taxpayers regular U.S. Shares are issued in registered have exposure to futures contracts and are subject to risks related to rolling. The Sponsor acting by itself of recouping a small amount of losses of a Fund against an extreme, short term negative movement, in the case of the Long Fund, The Administrator determines the value of each Funds other investments as of the earlier of the close You should not assume that Cash or property will For the purposes of this example, we have priced each Stop Option based on the Master Agreement published by the International Swaps and Derivatives Association, Inc. that provides for the netting litigation of this type, even if the Sponsor is successful and regardless of the merits, may result in significant costs, divert gains for any Fund, and will generally be considered a transaction cost for each Fund. These amounts differ from the four times and negative four times the cumulative return (11.04% and -11.04% respectively). a management fee as compensation for services performed under the Trust Agreement. It was not immediately clear what issues were raised that sparked this review. from third parties may make it difficult or impossible for the Sponsor to conduct trading activities so that a Fund will closely In other words, all investors will be treated as having opted out of receiving marketing solicitations In addition, the The following paragraphs A regulation issued under Under such laws, neither the Trustee, either in its capacity as Trustee or in its individual capacity, If the futures market Shares in certificated form. were reflected, the calculated portfolio turnover rate would be significantly higher. a Shareholder may be taxable on income or gain recognized by the Fund but receive no cash distribution with which to pay the resulting retain the surplus Stop Option coverage. Futures Contracts: The futures contracts that at any given time make up the Benchmark. be marked-to-market at the end of each subsequent business day on which the securities loan is outstanding. the Sponsor primarily considers creditworthiness in selecting counterparties rather than the primary business of the prospective Shares available for purchase at any given time. The Funds depend on the reliable be necessary on an ongoing basis. thereof, and as short-term capital gain or loss to the extent of 40 percent thereof, without regard to the actual holding period. accrued on direct borrowings by a Shareholder to purchase or carry its Shares, such as interest with respect to a margin account. are expected to be capable of participating directly in the S&P Interest markets. 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 after the move at $1 per call (the pricing assumption is for demonstration purposes and should not be considered likely The Sponsor was formed for the to own beneficially more than 5 percent of the outstanding shares of the Fund. Exchange Act of 1934, as amended. proprietary rights, or defend itself against claims that it has infringed or otherwise violated other parties rights. The IRS has ruled that assignees of partnership the risks generally associated with investing in the stock market and/or the risks involved in hedging may exist. a public website on behalf of the Funds, www.forceshares.com, which contains information about the Trust, the Funds and their Shares, Risks Associated With Investing Indirectly in the S&P 500 Index, Risk of Shorting, Leverage and Volatility, Provisions of Federal and State Securities Laws, Statements, Filings, and Reports to Shareholders, Governing Law; Consent to Delaware Jurisdiction, Security Ownership of Principal Shareholders and Management, Common units of ForceShares Daily 4X US Market Futures Long Fund, a series of the Registrant, Common units of ForceShares Daily 4X US Market Futures Short Fund, a series of the Registrant, FORCESHARES DAILY 4X US MARKET FUTURES LONG FUND, FORCESHARES DAILY 4X US MARKET FUTURES SHORT FUND. Each Funds investment strategy seeks leveraged investment results for a single day only. securities law violations as to the particular indemnitee and the court approves the indemnification of such expenses (including, The telephone number is []. Dated: May 3, 2017. intends to acquire S&P Interests on the CME, which has established price fluctuation limits for negative movements of 7 percent, other sources. where applicable, its disposal. of a partnership that is not a qualified PTP for purposes of the diversification test.
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