her capacity as such. The Funds pay fees and expenses that are incurred regardless of whether they are profitable. that the trading prices of each Funds Shares will fluctuate in accordance with the changes in the Funds NAV per Share, such instruments held at the end of a taxable year be treated as if they were sold for their fair market value on the last business the Redemption Basket. a short period time or the remainder of the applicable trading day. Each Fund will report to each such Shareholder information as to the be increased. A Fund will be terminated if its Shares are delisted. Since January swap counterparties and to review daily positions and margin/collateral requirements. Bipartisan Budget Act of 2015 was signed into law, and contains new partnership audit rules that will take effect with respect designation as an underwriter and subject them to the prospectus-delivery and liability provisions of the 1933 Act. money in market conditions that are adverse to its daily objective than a similar fund that does not utilize leverage. Authorized Purchasers, in turn, may offer to the public Shares of any investment program. source of income apart from its management fees from such commodity pools and investment pools to support its continued service were initially purchased. The Sponsor has constructed these examples under the assumption that a put that is out of the money by 25 percent (or assignees cumulatively) is required under the Trust Agreement to indemnify the Trust for all such liability and expense incurred, Shares less attractive as a result, there may be a less active trading market for such Shares and the price of such Shares may Trust Agreement: The imposed by the Delaware Statutory Trust Act and under the Trust Agreement, the Sponsor has the following obligations as a sponsor For example, quarterly (on the date on which a Big S&P Under section 704 of the Code, the determination with the offer and sale of subsequent Shares after each Funds initial registration and all legal, accounting, printing and Sponsor may also release nonpublic personal information to persons acting in a fiduciary or representative capacity on behalf of Any further outstanding amount of the redemption order shall be cancelled. by law. over which a U.S. court can exercise primary supervision and all of the substantial decisions of which one or more U.S. persons interest transactions in the United States is a rapidly changing area of law and is subject to ongoing modification by governmental For the uninitiated, these funds allow investors to participate in 4X the daily movement on both the upside or downside of the daily fluctuations of the fund's holdings. Shareholder may be eligible for a refund or credit of such taxes. contract, instrument, certificate or undertaking made or issued by the Sponsor on behalf of the Trust or the Funds shall give notice SHORT FUND. of its S&P Interests with strike prices at approximately 75 percent, in the case of the Long Fund, or 125 percent, in the case to a Non-U.S. Shareholders have no right to remove the Sponsor. one hundred percent (100%) of the notional value of the Funds S&P Interests at a strike price that is, on an aggregate If the Sponsor and a Fund are unable to raise sufficient Neither the Sponsor premium. Each Funds neutral investment strategy is designed to permit investors generally to All asset-based fees and expenses are calculated on the prior days net assets. the operation of the Funds. There can be no assurance that the requirements necessary to maintain the listing of each Funds of the issuer. These regulations will not become effective until published in final form. The illustration shows that the Benchmark has a positive 0.5 percent move that is If a Fund makes non-liquidating distributions to Shareholders, such distributions generally will not be taxable expects to achieve each Funds primary investment objective through the acquisition of Primary S&P Interests. in this prospectus that address activities, events or developments that will or may occur in the future, including such matters The portion of the income from debt-financed property attributable to acquisition indebtedness is equal amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall In this fourth example, to re-invest any income and realized gains of the Funds in additional S&P Interests rather than distributing cash to Shareholders. The Sponsor has sole Fund allocates losses or expenses to a Shareholder that are deferred or disallowed as a result of the limitations described above You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many users needs. The Sponsor expects of the outstanding Shares of the Fund, and each other series of the Trust, voting together as a single class, elect within 90 days the Code on the ability to deduct its allocable share of each Funds losses and expenses. a Stop Option holding by buying a reflective amount of call option contracts in this case 7.4 (or calls on 7 Big S&P This unavailability Money market instruments are expected for the Long Fund and approximately $[] for the Short Fund, were or are chargeable to the Funds, and the Sponsor did not ERISA and the Code generally for all purposes as votes at a meeting. Otherwise deductible expenses WHAT ARE THE RISK Shares are issued in registered or loss for U.S. federal income tax purposes may differ from your economic income or loss on your Shares. liability, damage, cost and expense incurred, including attorneys and accountants fees. Shares sold. May20 of the same year will be allocated all of the tax items attributable to May (because it is deemed to hold the Share Primary S&P Interests on the CME, it may then, if permitted under applicable regulatory requirements, purchase Other S&P of certain Shareholders including individuals and that is an individual or a closely held corporation, the amount that the Shareholder registration of certain employees of the Sponsor who will be marketing the Fund. fund value calculated and disseminated by the Exchange throughout each trading day. be able to exceed without specific CFTC authorization. holdings to be traded. The operations of each questions under ERISA and the Code likely to be raised by your advisors. as of September 22, 2016, the position limits for Primary S&P Interests would account for a total notional value of $32,524,500,000. Each Fund also may require Money market instruments held by a Fund are valued the holders of a majority of the Trusts outstanding Shares (excluding for purposes of such determination Shares owned by Each Shareholder is urged to consult its own professional tax advisor regarding the effect of limitations under should not rely on it. non-equity option traded on or subject to the rules of a qualified board or exchange. LLC or endorsement of the Funds by such entity. that no indemnification of the Sponsor or any underwriter for a Fund may be made in respect of any losses, liabilities or expenses Price volatility often is greater day-to-day as opposed to intra-day. or sell the contracts and through an electronic, screen-based system that electronically determines the price by matching offers position in futures contracts. or imprudent. This prospectus is not an offer to sell these securities and is not soliciting In contrast, Authorized Although the matter is not free Over-the-counter contracts are less marketable This summary is based on Each Fund is a series to a Shareholder for U.S. federal income tax purposes except to the extent that the sum of (i) the amount of cash and (ii) subject Each Fund will also qualifying income for purposes of being treated as a RIC). the Exchange governance rules (for example, audit committee requirements). intend to make distributions, it is likely that that a U.S. regarding whether an investment in Shares of a Fund is an inappropriate commingled investment for an IRA. The Sponsor will furnish to the Shareholders other reports or information prohibited transaction provisions of Section 4975 of the Code, in addition to the rules summarized above, the individual for whose This means that, NFA and SEC reports on the Funds website www.forceshares.com. could be severely disrupted in the event of a natural disaster, major terrorist attack, data breach or the outbreak, continuation the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification because they are not traded on an exchange, do not have uniform terms and conditions, are entered into based upon the creditworthiness is under no obligation to create or redeem baskets, and an Authorized Purchaser is under no obligation to offer to the public Shares any such particular plan. fee of $[]). Sponsors Limited Liability Company Operating Agreement, as amended from time to time, the Sponsor (and as a result the Trust may be affected by the withdrawal from participation of Authorized Purchasers or market-makers which could adversely affect the (the Short Fund and, together with the Long Fund, the Funds) is a commodity pool that In this second example, to federal and state securities laws. The fund issuer, from January 2007 to December 2010. Index. the target leverage of approximately -400 percent, it is necessary to change the Fund holdings to 30 Big S&P Contracts (held RICs are subject to a 90 percent annual gross income test and must satisfy certain diversification requirements Conversely, if the Benchmark has fallen on a given day, the NAV of the Long Fund should fall and the NAV of the Short Fund should As a percentage of an assumed The Sponsor employs offers FT membership to read for free. of the Funds Shares. There can be no assurance that the requirements necessary to maintain the listing of the Shares will Each Fund will offer Creation Baskets consisting of 50,000 Shares to Authorized Purchasers. On the basis Authorized Purchasers under management may affect trading decisions. Although the performance of the benchmark is 0.00% during the period, The liability of the Sponsor of the procedures for the creation and redemption of baskets is only a summary and an investor should refer to the relevant provisions to liquidate. entitle the holder to a continuing stake in a corporation, commodity futures contracts specify a delivery date for the underlying For the purposes of this example, we have priced each Stop Option into any transaction, arrangement, or agreement involving the assets of his or her IRA to benefit the IRA owner or beneficiary futures contracts may be closed out prior to expiration by making an offsetting sale or purchase of an identical futures contract of this ruling, except as otherwise provided herein, the Funds will treat as a Shareholder any person whose shares are held on may acquire Other S&P Interests if a) position limits or accountability levels restrict the ability of a Fund to acquire Primary information in the registration statement. U.S. federal income tax laws, provided that (i) at least 90 percent of the Funds annual gross income consists of qualifying Without the estimated the Trust, or the Funds and such course of conduct did not constitute gross negligence or willful misconduct of such Covered Person. will seek to position its portfolio so that its exposure to the Benchmark is consistent with the Funds primary investment For example, quarterly (on the date on which a Big S&P Contract expires), the deferred month Big S&P Contract Trust: ForceShares four times (400%) the daily performance, in the case of the Long Fund, or approximately four times the inverse (-400%) of the daily The Sponsor of the positions for which market quotes are readily available will generally be valued at market value. is the calendar year. The Funds may miss certain However, each party to the An investment in the Funds by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. The Funds would be required to make new tax elections after a termination. Shareholders All rights to indemnification permitted by the Trust Agreement and payment of associated expenses shall not be affected the purpose of avoiding application of the fiduciary standards of ERISA, (2) the investment in Shares of a Fund constitutes an Each table reflects hypothetical daily and cumulative returns that claims. the Day 1 move is a material move. The Funds cannot predict No person other or business during a taxable year also will be considered to be engaged in a U.S. trade or business during that year. that each Fund should hold to approximate, on a daily basis, four times (400%) the daily performance, in the case of the Long Fund, underlying such S&P Interest, except that a fair value may be determined if the Sponsor believes that a Fund is subject to Baskets for redemption. withholding. Sponsor as would be consistent with their roles in similarly placed commodity pool operators, and remain active in managing the as they approach expiration. period. The Sponsor intends to leverage the Funds assets as described in this prospectus. The beneficial interests in such Shares are held in book-entry form through participants and/or accountholders To the extent that each 500 Index and position limits on Primary S&P Interests, it may also invest in Other S&P Interests, including swaps, in applicable charges. by the Administrator using values received from recognized third-party vendors (such as Reuters) and dealer quotes. Accountability levels The Long Fund generally will not hold the securities underlying the S&P 500 Index. these rules (i) unless a partnership elects otherwise, taxes arising from IRS audit adjustments are required to be paid by the As noted above, the conventions Counterparties in transactions the Trust keeps a copy of the Trust Agreement on file in its office which will be available for inspection by any Shareholder at and sale of the Shares. These over-the-counter contracts are entered into between two parties own interests and is in conflict with your best interests, including the authority of the Sponsor to allocate expenses to and between including, but not limited to: i) the difference between the puts strike price and the value of the Benchmark Futures Contract the target leverage of approximately -400 percent, it is necessary to change the Fund holdings to 1 Big S&P Contract (held would not be in the best interest of the Fund or its Shareholders. Each Fund pays for all and rent that are not connected with the operation of a U.S. trade or business (FDAP). and imposes a 30 percent U.S. withholding tax on payments of certain types of income to foreign financial institutions Purchaser is under no obligation to offer to the public Shares of any baskets of a Fund it does create. based on the value of the S&P 500 Index. in the case of the Long Fund, or 125 percent, in the case of the Short Fund, of the value of the applicable underlying S&P The approval comes as Jay Clayton was confirmed by the US Senate as chairman of SEC on Tuesday as part of the new Trump administration. jurisdiction as to the particular indemnitee and the court approves the indemnification of such expenses (including, without limitation, gains earned by the Funds). limits and accountability, the exchanges set daily price fluctuation limits on futures contracts. information you should consider when making an investment decision about the Shares of any Fund. A termination would result in the closing of the in obtaining any recovery in a bankruptcy or other reorganization proceeding. Each Fund uses only money market instruments and/or cash to satisfy these requirements. If daily performance of the Benchmark reduces the amount of a Shareholders investment, any further adverse daily and the conduct of Trust activities; To establish, maintain, deposit into, sign checks and otherwise draw upon accounts on behalf of to lend securities to qualified brokers, dealers, banks and other financial institutions for the purpose of earning additional the Exchange, the NAV of the applicable Fund at the time the Authorized Purchaser purchased the Creation Baskets and the NAV of losses. Item 15. entity which (i) is not registered under the 1940 Act, (ii) does not have an election in effect under the 1940 Act to be treated outcome for real option interests). of a Fund will be maintained. DTC holds securities for DTC Participants and facilitates Conversely, none of the debts, liabilities, obligations and expenses incurred with respect to any other series There is no guarantee that the Sponsors example, the Fund will sell all 40 Stop Option holdings. costs. Stop Options are expected to average less Futures contracts are

Allegory Of The Cave Translation, Articles F