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SECURITIES AND EXCHANGE COMMISSION (Release No. 34-53521; File No. SR-Amex-2005-072) - page 21 / 32

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Specialist transactions of Silver Shares made in connection with the creation and

redemption of Silver Shares will not be subject to the prohibitions of Amex Rule 190.44 Unless

exemptive or no-action relief is available, Silver Shares will be subject to the short sale rule,

Rule 10a-1 and Regulation SHO under the Act. 45 If exemptive or no-action relief is provided,

the Exchange will issue a notice detailing the terms of the exemption or relief. The Silver Shares

will generally be subject to the Exchange’s stabilization rule, Amex Rule 170, except that

specialists may buy on “plus ticks” and sell on “minus ticks,” in order to bring the Silver Shares

into parity with the underlying silver and/or futures price. Commentary .01 to Amex Rule

1203A sets forth this limited exception to Amex Rule 170.

Amex Rule 1203A relating to certain specialist prohibitions addresses potential conflicts

of interest in connection with acting as a specialist in the Silver Shares. Specifically, Amex Rule

1203A provides that the prohibitions in Amex Rule 175(c) apply to a specialist in the Silver

Shares so that the specialist or affiliated person may not act or function as a market maker in the

underlying silver, related silver futures contract or option, or any other related silver derivative.

An affiliated person of the specialist, consistent with Amex Rule 193, may be afforded an

exemption to act in a market making capacity, other than as a specialist in the Silver Shares on

another market center, in the underlying silver, related silver futures or options, or any other

related silver derivative. In particular, Amex Rule 1203A provides that an approved person of an

equity specialist that has established and obtained Exchange approval for procedures restricting

the flow of material, non-public market information between itself and the specialist member

organization, and any member, officer, or employee associated therewith, may act in a market

44

45

See Commentary .05 to Amex Rule 190. The Silver Trust has requested relief in connection with the trading of Silver Shares from

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