Company: EUO
Filing Date: 2025-03-27
Form Type: 424B3
Source: 0001193125-25-065644
Chunk: 332

Company: ProShares Trust II
Filing Date: 2025-03-27
Form: 424B3
Chunk 332
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 The Securities and Exchange Commission announced charges against 15 broker-dealers and one affiliated investment adviser for widespread and longstanding failures by the firms and their employees to maintain and preserve electronic communications. The firms admitted the facts set forth in their respective SEC orders, acknowledged that their conduct violated recordkeeping provisions of the federal securities laws, agreed to pay combined penalties of more than $1.1 billion, and have begun implementing improvements to their compliance policies and procedures to settle these matters. Barclays Capital Inc., Deutsche Bank Securities Inc. together with DWS Distributors Inc. and DWS Investment Management Americas, Inc.; Goldman Sachs & Co. LLC; Morgan Stanley & Co. LLC together with Morgan Stanley Smith Barney LLC; and UBS Securities LLC together with UBS Financial Services Inc. have each agreed to pay penalties of $125 million. June 29, 2022 - Case 2020-033. On June 29, 2022, a subcommittee of the Intercontinental Exchange’s Business Conduct Committee (“BCC”) determined that GSI may have violated Exchange Rule 4.04 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, as of any daily rebalance, the Matching Fund will ever have futures exposure greater than one times (1x) such Fund’s assets or that the Ultra Funds or UltraShort Funds will ever have futures exposure greater than two times (2x) such Fund’s assets (although this is possible in some circumstances