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SECURITIES AND EXCHANGE COMMISSION (Release No. 34-53521; File No. SR-Amex-2005-072) - page 2 / 32

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II.

Description of Proposal

In January 2005, the Exchange adopted rules for the listing and trading of “Commodity-

Based Trust Shares.”8 Commodity-Based Trust Shares (the “Commodity Shares”) are securities

issued by a trust that represent investors’ discrete identifiable and undivided beneficial

ownership interest in the commodities deposited into the trust. Commodity Shares are a form of

trust issued receipt (“TIR”) 9 that instead of holding one or more discrete securities will hold one

or more physical commodities. The Exchange has listed the iShares COMEX Gold Trust10 and

trades pursuant to unlisted trading privileges (“UTP”), the streetTRACKS Gold Trust,11 as

Commodity-Based Trust Shares pursuant to Exchange Rules 1200A et seq.

Pursuant to Amex Rule 1201A, the Exchange may approve for listing and trading

Commodity Shares on an underlying commodity.12 Accordingly, the Amex proposes to list for

8

See Securities Exchange Act Release No. 51058 (January 19, 2005), 70 FR 3749 (January 26, 2005) (approving the listing and trading of the iShares COMEX Gold Trust).

9

A Trust Issued Receipt or “TIR” is defined in Exchange Rule 1200(b) as a security (a) that is issued by a trust that holds specified securities deposited with the trust; (b) that, when aggregated in some specified minimum number, may be surrendered to the trust by the beneficial owner to receive the securities; and (c) that pays beneficial owners dividends and other distributions on the deposited securities, if any are declared and paid to the trustee by an issuer of the deposited securities. Under Amex Rule 1201, the Exchange may approve for listing and trading TIRs based on one or more securities. The Exchange defines a “security” or “securities” to include stocks, bonds, options, and other interests or instruments commonly known as securities. See Article I, Section 3(j) of the Amex Constitution.

10

See supra note 8.

11

See Securities Exchange Act Release No. 51446 (March 29, 2005), 70 FR 17272 (April 5, 2005) (approving the UTP trading of the streetTRACKS Gold Shares).

12

Amex Rule 1200A(b)(2) defines “commodity” as set forth in Section 1(a)(4) of the Commodity Exchange Act (“CEA”).

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