Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
(a) Basis of Presentation |
The financial statements of the Fund have been prepared using U.S. generally accepted accounting principles. |
The presentation of Shareholders’ Equity in prior years has been updated to conform to the September 30, 2013 presentation. Total Shareholders’ Equity was not affected by these changes. |
Use of Estimates | ' |
(b) Use of Estimates |
The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosure of contingent assets and liabilities during the reporting period of the financial statements and accompanying notes. Actual results could differ from those estimates. There were no significant estimates used in the preparation of these financial statements. |
Financial Instruments and Fair Value | ' |
(c) Financial Instruments and Fair Value |
United States Treasury Obligations and currency futures contracts are recorded in the statements of financial condition on trade date at fair value with changes in fair value recognized in earnings in each period. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). |
Financial Accounting Standards Board (FASB) Accounting Standards Codification fair value measurement and disclosure guidance requires a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: |
Basis of Fair Value Measurement |
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; |
Level 2: Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; |
Level 3: Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. |
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. |
In determining fair value of United States Treasury Obligations and currency futures contracts, the Fund uses unadjusted quoted market prices in active markets. United States Treasury Obligations and currency futures contracts are classified within Level 1 of the fair value hierarchy. The Fund does not adjust the quoted prices for United States Treasury Obligations and currency futures contracts. |
Assets and Liabilities Measured at Fair Value were as follows: |
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| | September 30, | | | December 31, | | | | | | | | | | | |
2013 | 2012 | | | | | | | | | | |
United States Treasury Obligations (Level 1) | | $ | 65,999,071 | | | $ | 72,995,469 | | | | | | | | | | | |
Currency Futures Contracts (Level 1) | | $ | 1,070,832 | | | $ | (21,654 | ) | | | | | | | | | | |
There were no Level 2 or Level 3 holdings as of September 30, 2013 and December 31, 2012. |
Deposits with Commodity Broker | ' |
(d) Deposits with Commodity Broker |
The Fund deposits cash and United States Treasury Obligations with its Commodity Broker subject to Commodity Futures Trading Commission (the “CFTC”) regulations and various exchange and Commodity Broker requirements. The combination of the Fund’s deposits with its Commodity Broker of cash and United States Treasury Obligations and the unrealized profit or loss on open futures contracts (variation margin) represents the Fund’s overall equity in its Commodity Broker trading account. To meet the Fund’s initial margin requirements, the Fund holds United States Treasury Obligations. The Fund uses its cash held by the Commodity Broker to satisfy variation margin requirements. The Fund earns interest on its cash deposited with the Commodity Broker. |
United States Treasury Obligations | ' |
(e) United States Treasury Obligations |
The Fund records purchases and sales of United States Treasury Obligations on trade date. These holdings are marked to market based on quoted closing prices. The Fund holds United States Treasury Obligations for deposit with the Fund’s Commodity Broker to meet margin requirements and for trading purposes. Interest income is recognized on an accrual basis when earned. Premiums and discounts are amortized or accreted over the life of the United States Treasury Obligations. Included in the United States Treasury Obligations as of September 30, 2013 and December 31, 2012 were holdings of $1,395,680 and $1,290,300, respectively, which were restricted and held as initial margin of the open futures contracts. |
Cash Held by Commodity Broker | ' |
(f) Cash Held by Commodity Broker |
The Fund’s arrangement with the Commodity Broker requires the Fund to meet its variation margin requirement related to the price movements, both positive and negative, on futures contracts held by the Fund by keeping cash on deposit with the Commodity Broker. The Fund defines cash and cash equivalents to be highly liquid investments, with original maturities of three months or less when purchased. As of September 30, 2013, the Fund had $2,900,378 of cash held with the Commodity Broker. As of December 31, 2012, the Fund had cash held by the Commodity Broker of $19,586,191, of which $21,654 was on deposit to satisfy the Fund’s negative variation margin on open futures contracts. There were no cash equivalents held by the Fund as of September 30, 2013 and December 31, 2012. |
Income Taxes | ' |
(g) Income Taxes |
The Fund is classified as a partnership for U.S. federal income tax purposes. Accordingly, the Fund will not incur U.S. federal income taxes. No provision for federal, state, and local income taxes has been made in the accompanying financial statements, as investors are individually liable for income taxes, if any, on their allocable share of the Fund’s income, gain, loss, deductions and other items. |
The major tax jurisdiction for the Fund and the earliest tax year subject to examination: United States, 2009. |
Futures Contracts | ' |
(h) Futures Contracts |
All currency futures contracts are held and used for trading purposes. Currency futures are recorded on trade date and open contracts are recorded in the statement of financial condition at fair value on the last business day of the period, which represents market value for those currency futures contracts for which market quotes are readily available. However, when market closing prices are not available, the Managing Owner may value an asset of the Fund pursuant to policies the Managing Owner has adopted, which are consistent with normal industry standards. Realized gains (losses) and changes in unrealized appreciation (depreciation) on open positions are determined on a specific identification basis and recognized in the statement of income and expenses in the period in which the contract is closed or the changes occur, respectively. Futures contracts held as of September 30, 2013 are indicative of the volume of derivative activity during the period. |
The Fair Value of Derivative Instruments is as follows: |
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Derivatives not Accounted for as Hedging Instruments | | Statements of Financial Condition Location | | Net Unrealized | | | Net Unrealized | | | | | | | | | |
Appreciation / | Appreciation / | | | | | | | | |
(Depreciation) at | (Depreciation) at | | | | | | | | |
September 30, 2013 | December 31, 2012 | | | | | | | | |
Commodity Futures Contracts | | Net Unrealized Appreciation (Depreciation) on Futures Contracts | | $ | 1,070,832 | | | $ | (21,654 | ) | | | | | | | | |
The Effect of Derivative Instruments on the Statements of Income and Expenses is as follows: |
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| | | | For the Three Months Ended | | | For the Three Months Ended | |
September 30, 2013 | September 30, 2012 |
Derivatives not Accounted for as Hedging | | Location of Gain or (Loss) on | | Realized Gain | | | Change in | | | Realized Gain | | | Change in | |
Instruments | Derivatives Recognized in Income | or (Loss) on | Unrealized Gain | or (Loss) on | Unrealized Gain |
| | Derivatives | or (Loss) on | Derivatives | or (Loss) on |
| | Recognized in | Derivatives | Recognized in | Derivatives |
| | Income | Recognized in | Income | Recognized in |
| | | Income | | Income |
Commodity Futures Contracts | | Net Realized Gain (Loss) on Futures | | $ | (437,424 | ) | | | — | | | $ | 2,910,540 | | | | — | |
| | Net Change in Unrealized Gain (Loss) on Futures | | | — | | | $ | 3,155,758 | | | | — | | | $ | (1,186,586 | ) |
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| | | | For the Nine Months Ended | | | For the Nine Months Ended | |
September 30, 2013 | September 30, 2012 |
Derivatives not Accounted for as Hedging | | Location of Gain or (Loss) on | | Realized Gain | | | Change in | | | Realized Gain | | | Change in | |
Instruments | Derivatives Recognized in Income | or (Loss) on | Unrealized Gain | or (Loss) on | Unrealized Gain |
| | Derivatives | or (Loss) on | Derivatives | or (Loss) on |
| | Recognized in | Derivatives | Recognized in | Derivatives |
| | Income | Recognized in | Income | Recognized in |
| | | Income | | Income |
Commodity Futures Contracts | | Net Realized Gain (Loss) on Futures | | $ | (1,899,006 | ) | | | — | | | $ | 2,447,411 | | | | — | |
| | Net Change in Unrealized Gain (Loss) on Futures | | | — | | | $ | 1,092,486 | | | | — | | | $ | (1,347,609 | ) |
Brokerage Commissions and Fees | ' |
(i) Brokerage Commissions and Fees |
The Fund incurs all brokerage commissions, including applicable exchange fees, National Futures Association (“NFA”) fees, give-up fees, pit brokerage fees and other transaction related fees and expenses charged in connection with trading activities by the Commodity Broker. These costs are recorded as brokerage commissions and fees in the statement of income and expenses as incurred. The Commodity Broker’s brokerage commissions and trading fees are determined on a contract-by-contract basis. On average, total charges paid to the Commodity Broker were less than $15.00 per round-turn trade for the Three Months Ended September 30, 2013 and 2012 and the Nine Months Ended September 30, 2013 and 2012. |
Routine Operational, Administrative and Other Ordinary Expenses | ' |
(j) Routine Operational, Administrative and Other Ordinary Expenses |
The Managing Owner assumes all routine operational, administrative and other ordinary expenses of the Fund, including, but not limited to, computer services, the fees and expenses of the Trustee, legal and accounting fees and expenses, tax preparation expenses, filing fees and printing, mailing and duplication costs. Accordingly, all such expenses are not reflected in the statement of income and expenses of the Fund. |
Organizational and Offering Costs | ' |
(k) Organizational and Offering Costs |
All organizational and offering expenses of the Fund are incurred and assumed by the Managing Owner. The Fund is not responsible to the Managing Owner for the reimbursement of organizational and offering costs. Expenses incurred in connection with the continuous offering of Shares are also paid by the Managing Owner. |
Non-Recurring and Unusual Fees and Expenses | ' |
(l) Non-Recurring and Unusual Fees and Expenses |
The Fund pays all fees and expenses which are non-recurring and unusual in nature. Such expenses include legal claims and liabilities, litigation costs or indemnification or other unanticipated expenses. Such fees and expenses, by their nature, are unpredictable in terms of timing and amount. For the Three Months Ended September 30, 2013 and 2012 and the Nine Months Ended September 30, 2013 and 2012, the Fund did not incur such expenses. |