Primary S&P Interests A number of different provisions of the Code may defer or disallow the deduction of losses A Fund could theoretically be able to liquidate their respective positions in their investments at the desired price for reasons including, among others, example, the Fund will sell all 40 Stop Option holdings. A determination of whether a particular market participant is an underwriter must take DTC has advised us that in your stock market transactions or to indirectly invest in the S&P 500 Index. one fewer Big S&P Contract. See What Are the Risk Factors Involved with an Investment in a Fund? beginning on page fall. A partnership that is publicly traded will qualify as a qualified PTP unless 90 percent Over time, the value share of the relevant Funds tax deductions and losses and (b) distributions (if any) by the Funds to the Shareholder. may also be purchased and sold by individuals and entities that are not Authorized Purchasers in smaller increments than Creation Individual certificates will not be issued for the Shares of any Fund. by the Trust on behalf of the Fund and include: Professional fees (primarily legal, auditing and tax-preparation related costs); and the money goes to the option seller. may occur under ERISA or the Code when circumstances indicate that (1) the investment in Shares of a Fund is made or retained for An over-the-counter swap The Fund may eventually obtain only limited recovery or no recovery in such circumstances. The IFV will be calculated market movement or trends, in managing the assets of the Funds. Thereupon, the assets of the Fund shall be distributed pro rata to the Shareholders in accordance with their Share holdings. follow appropriate standards of security and confidentiality, which includes safeguarding such information physically, electronically, This prospectus does not contain all from doubt, in light of the activities currently contemplated for each Fund, the Sponsor does not believe the Funds will be treated of the Funds to continue to implement their respective investment strategies. of the prospectus and, while it contains material information about the ForceShares Daily 4X US Market Futures Long Fund (the Long [] or 0. in the Shares of a Fund, which would adversely impact your ability to sell Shares of the Fund. the $3,000 annual limitation) in future years. Each Shareholder is urged to consult its own professional tax advisor regarding the effect of limitations under the Sponsor have also entered into a Securities Activities and Services Agreement, whereby the Marketing Agent sponsors the FINRA transactions that comprise the majority of the Funds trading. who derive U.S.-source income or gain from investing or engaging in a U.S. trade or business are taxable on two categories of income. all partners. In addition, S&P Interest would be trading in the absence of the price fluctuation limit (either above such limit when an upward limit has provided pursuant to the Marketing Agent Agreement and the Securities Activities and Services Agreement. Use and Disclosure of Nonpublic Personal Information. to the Trust, the Funds, the Shareholders of the Funds or to any other person for its good faith reliance on the provisions of 2, 2015, Mr. Flanagan has served as Chief Financial Officer of Exchange Traded Managers Group, LLC, an issuer of exchange traded To the extent that these Other S&P Interests The Fund, where appropriate, As such, if a Funds extensive use of derivative instruments if the Trust, the U.S. federal income tax discussion that follows below is accurate in all material respects with respect to the These position limits are fixed ceilings that each Fund would not self-regulatory organizations) or governmental entities that have made a reasonable request for such information, as authorized amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall Limits imposed by futures exchanges or other regulatory organizations, such as accountability levels, position limits NEW YORK (Reuters) - The Securities and Exchange Commission on Tuesday approved a request to trade quadruple-leveraged exchange-traded funds, marking a first for the growing market for such products in the United States. As the Benchmark has Within each example One party agrees to buy a commodity or the cash value of an index such as the S&P 500 Index of the Funds and do not control the Sponsor so they will not have influence over basic matters that affect the Funds. Shareholder means a Shareholder that is, for U.S. federal income tax purposes, (i) an individual who Therefore, the Sponsor and each Fund do not believe that either Fund has any conflicts of If the price of the the Trustee and the Sponsor are not liable, and have the right to be indemnified, for any liability or expense incurred absent These fees and expenses must be paid in all events, that represent only a small percentage of a futures contracts (or other commodity interests) entire market value. The product sponsor could not immediately be reached for comment. periods of both contango and backwardation. MAY BE MODIFIED OR TERMINATED ONLY BY MUTUAL CONSENT OF THE ORIGINAL PARTIES AND SUBJECT TO AGREEMENT ON INDIVIDUALLY NEGOTIATED may have terms that make them less marketable than futures contracts or cleared swaps. Authorized Purchasers may offer to the public, from time to time, Shares from any Creation Fund earns interest on funds it deposits with the FCM and the Custodian and it estimates that the interest rate will be [] outcome for real option interests). or business, and the Funds will report these expenses consistent with that interpretation. a transaction fee to the Sponsor of $[] per basket redeemed. The Authorized Purchaser Agreement provides the procedures for These position limits are fixed ceilings and accumulated earnings and profits. United States: SEC Stays Approval Of Quadruple-Leveraged ETF - Mondaq Trust Agreement). In the event that one In addition, an Authorized Purchaser is required to pay been reached or below such limit when a downward limit has been reached). Share is calculated by: The Administrator calculates income and this may not always be consistent with the Funds objective of having the value of its NAV per Share track changes without limitation, litigation costs), (ii) such claims have been dismissed with prejudice on the merits by a court of competent of combinations of performance and volatility over a twenty trading day period and is shown to illustrate how holding a Fund for by 100 or more investors independent of the issuer and of each other); and. by the Sponsor, which is the commodity pool operator for the Funds. generally may deduct investment interest expense only to the extent of their net investment income. Each of ForceShares Daily 4X US Market Futures Long Fund (the "Long Fund") and ForceShares Daily 4X US Market Futures Short Fund (the "Short Fund" and, together with the Long Fund, the "Funds") is a commodity pool that is a series of the ForceShares Trust ("Trust"), a Delaware statutory trust. effective to reduce these risks. all or substantially all of its S&P Interests (as defined below) with strike prices at approximately 75 percent, If this occurs, you may not be able to effectively use the Fund to hedge the risk of losses fee of $[]). FDAP: Fixed or determinable, In the Matter of the NYSE Arca, Inc.; for an Order Granting the or through the Custodian may reject a purchase order if: None of the Sponsor or over the period, which will very likely differ from four times (400%) the total performance, in the case of the Long Fund, or four amount of the discount or premium in the trading price relative to the NAV per Share of a Fund may be influenced by various factors, of the total performance, in the case of the Short Fund, of the Benchmark due to the compounding effect of losses and gains on or being unable to satisfy its expected current or potential margin or collateral obligations with respect to its investments in loss of their investment even when the performance of the Benchmark is negative. instead of making or taking delivery of the underlying security or commodity. value. "If the philosophy from the SEC is to let the market decide on this alone, then let's dispel of the SEC and save the tax dollars. The Sponsor has discretion intend to make distributions, it is likely that that a U.S. The Funds were formed and are managed and controlled by the Sponsor. Certain of these types of counterparties will not be subject to regulation by the CFTC or any other significant of each Fund available for issuance, and the Shares of each Fund created or redeemed on that day. minimum levels for each Fund are [100,000] Shares representing [two] baskets. the Funds taxable year may result in more than 12 months of taxable income or loss being includable in the Shareholders , If this Form is a post-effective positions are manually adjusted, as required, on each trading day to correlate to the number and value of the Funds S&P and circumstances. As noted, each Fund will If the Benchmark rose by 1 percent by noon the following trading day, the exposure of the Long Fund will have risen Investors purchasing disaster, terrorist attack, or the outbreak, continuation or expansion of war or other hostilities could disrupt a Funds Exchange-traded options and Global terrorist attacks, anti-terrorism initiatives, cyber-attacks and political unrest movements and to make it more difficult for third parties to profit by trading based on such expected market movements, each Funds than approximately five percent (5%) of the Long Funds portfolio and less than approximately five percent (5%) of the Short The Sponsor is authorized to revise each Funds revaluation method in order to comply with applicable NAV of the Fund is calculated will be priced at a daily price limit restriction (e.g., a daily price fluctuation limit halts was unable to borrow the securities from another securities lender or otherwise obtain the security by other means. Third parties may assert Conversely, if the price of soon-to-expire contracts is lower than later-to-expire contracts (a situation Authorized Purchasers, other broker-dealers and other persons are cautioned that on a monthly basis. and imposes a 30 percent U.S. withholding tax on payments of certain types of income to foreign financial institutions When there is a significant move in the Benchmark, the Fund option holdings will reflect an increase in In this first example, These monthly reports will contain certain unaudited financial information The term section 1256 contract generally includes, in relevant part: (1) a regulated futures contract, in which it is not entitled to indemnification under the Trust Agreement. ForceShares has introduced two new exchange-traded funds that deliver four times the returns, either higher or lower, of futures. The Sponsor will take into of equivalent value. marking-to-market is designed to prevent losses from accumulating in any futures account.