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SECURITIES AND EXCHANGE COMMISSION (Release No. 34-53521; File No. SR-Amex-2005-072) - page 25 / 32





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thereof. Similarly, the Information Circular will advise members and member organizations,

prior to commencement of trading, of the prospectus delivery requirements applicable to the

Trust. The Exchange notes that investors purchasing Silver Shares directly from the Trust (by

delivery of the Basket Silver Amount) will receive a prospectus. Amex members purchasing

Silver Shares from the Trust for resale to investors will deliver a prospectus to such investors.

The Circular will also explain that the Silver Trust is subject to various fees and expenses

described in the Registration Statement and that the number of ounces of silver required to create

a basket or to be delivered upon a redemption of a basket will gradually decrease over time

because the Silver Shares comprising a basket will represent a decreasing amount of silver due to

the sale of the Silver Trust’s silver to pay Trust expenses. The Circular will also reference the

fact that there is no regulated source of last sale information regarding physical silver, that the

Commission has no jurisdiction over the trading of silver as a physical commodity, and that the

CFTC has regulatory jurisdiction over the trading of silver futures contracts and options on silver

futures contracts.

The Circular will advise members of their suitability obligations with respect to

recommended transactions to customers in the Silver Shares. The Exchange notes that pursuant

to Amex Rule 411 (Duty to Know and Approve Customers), members and member organizations

are required in connection with recommending transactions in the Silver Shares to have a

reasonable basis to believe that a customer is suitable for the particular investment given

reasonable inquiry concerning the customer's investment objectives, financial situation, needs,

and any other information known by such member.

The Circular will also discuss any relief, if granted, by the Commission or the staff from

any rules under the Act.


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