Company: EUO
Filing Date: 2025-03-28
Form Type: 424B3
Source: 0001193125-25-065648
Chunk: 312

Company: ProShares Trust II
Filing Date: 2025-03-28
Form: 424B3
Chunk 312
---
04 in several instances between May 2020 and July 2020 by engaging in improper pre-hedging. In each instance, GSI transacted a block trade against a customer after having received the customer order from GSI’s sales desk which had an existing agency (broker/customer) relationship with the customer. Prior to consummating each block trade opposite the customer, however, traders on GSI’s proprietary execution desk solicited and/or requested pricing for separate trades for the firm’s account on the block market and executed trades in the Central Limit Orderbook, which offset the risk of the customer order. GSI was able to realize profits in the amount of $1,319,249.80 by engaging in this activity. The BCC further found that GSI may have violated Exchange Rule 4.01(a) by failing to diligently supervise the activities of its employees with regard to the Exchange’s rules on pre-hedging. Fine Paid: $125,000. Disgorgement: $1,319,249. Margin Levels Expected to be Held at the FCMs While the portfolio composition may vary over time, it is not expected that the Ultra Funds or the UltraShort Fund will ever have futures exposure greater than two times (2x) such Fund’s assets (although this is possible in some circumstances, such as during periods of market volatility or in situations where margin requirements are high). It currently is anticipated that each Fund could have as much as 100% of its assets held in segregated accounts as collateral for its transactions in futures contracts and other Financial Instruments. The Funds receive the income on any securities or other property of the Funds transferred to the FCMs to fulfill requirements for margin to be held by the FCMs in respect of commodity interests, and receive a negotiated portion of any income derived by the FCMs in respect of any cash transferred to the FCMs and held for this purpose. SWAP COUNTERPARTIES The Funds intend to use Citibank, N.A. (“Citi”), Société Générale (“SG”), UBS AG (“UBS”), Royal Bank of Canada (“RBC”), Goldman Sachs International (“GSI”), and Morgan Stanley & Co. International PLC (“Morgan Stanley”) as counterparties to swap agreements that are not cleared on an exchange. Goldman Sachs & Co. (“GS&Co.”) may in the future act as a swap counterparty to the Funds. Each such entity may act as a counterparty for many other funds and individuals. Investors should be