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SECURITIES AND EXCHANGE COMMISSION (Release No. 34-53521; File No. SR-Amex-2005-072) - page 10 / 32





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extraordinary expenses or liabilities not assumed by the Sponsor. BNY will determine the

Basket Silver Amount for a given business day by subtracting the daily expense accrual from the

previous day’s total ounces of silver in the Trust and then dividing by the number of Baskets

outstanding. Fractions of an ounce of silver smaller than .001 will be disregarded.

The creation/redemption process in connection with the Silver Shares is an in-kind

exchange of silver for Shares, rather than an exchange of silver for cash. Except for the accrual

of the Sponsor’s fee or extraordinary expenses or liabilities, the process is based entirely on the

delivery of silver in exchange for Shares. Thus, throughout each business day, the Exchange

states that the actual number of ounces required for the Basket Silver Amount usually will not

change even though the value of the Basket Silver Amount may change based on the market

price of silver.


Determination of NAV, Basket Silver Amount, and Indicative Basket Amount

Shortly after 4:00 p.m. (ET) each business day, the BNY will determine the NAV of the

Trust, utilizing that day’s announced London silver fix price (unless the Sponsor, in consultation

with the Trustee, determines that an alternative publicly available pricing benchmark more fairly

represents the commercial value of the silver held by the Trust).32 Once the value of the silver is

Florence Harmon, Senior Special Counsel, Division of Market Regulation, Commission, on January 13, 2006.


In Amendment No. 1, Amex clarified that if there is no London silver fix price on that day, the BNY will use the most recently announced London silver fix price unless the BNY, in consultation, with the Sponsor (Barclays), determines such London silver fix price to be inappropriate.

Barclays, in consultation with the BNY, may determine that an alternative publicly available pricing benchmark more fairly represents the commercial value of silver held by the Trust. In the case of a temporary disruption of the London silver fix price, the Exchange believes that it is unnecessary for a filing pursuant to Section 19(b) under the


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