determined, BNY will then determine an “adjusted NAV” by subtracting all accrued fees (other
than the fees to be computed by reference to the value of the Trust or its assets (i.e., the
Sponsor’s fee)), expenses, and other liabilities of the Trust from the total value of silver and all
other assets of the Trust. This adjusted NAV is then used to compute the Sponsor’s fees that are
calculated from the value of Trust assets. Then to determine the final NAV, BNY will subtract
from the adjusted NAV the amount of accrued fees from the value of Trust assets. BNY will
calculate the NAV per share by dividing the NAV by the number of Silver Shares outstanding.
After the NAV is determined, at or about 4:00 p.m. each business day, BNY will then
determine the Basket Silver Amount for orders placed by Authorized Participants received
before 4:00 p.m. that day. BNY will also at the same time determine an “Indicative Basket
Silver Amount” that Authorized Participants can use as an indicative amount of silver to be
deposited for issuance of the Silver Shares on the next business day. Thus, although Authorized
Participants place orders to purchase Silver Shares throughout the trading day, the actual Basket
Silver Amount is determined at 4:00 p.m. or shortly thereafter.
Shortly after 4:00 p.m. each business day, BNY and the Sponsor will disseminate the
NAV for the Silver Shares, the Basket Silver Amount (for orders properly placed by 4:00 p.m.
during the day), and the next day’s Indicative Basket Silver Amount. The Basket Silver Amount,
the Indicative Basket Silver Amount, and the NAV are communicated by BNY to all Authorized
Participants via facsimile or electronic mail message and on the Trust’s Web site at
Act to be submitted to the Commission. The Exchange submits that for a temporary disruption of the London silver fix, a determination by Barclays, in consultation with the BNY, to use an alternative pricing source for silver, is appropriate. However, the Exchange represents that if the use of an alternative pricing source for the London silver fix price is more than of a temporary nature, a rule filing will be submitted pursuant to Section 19(b) of the Act.