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SECURITIES AND EXCHANGE COMMISSION (Release No. 34-53521; File No. SR-Amex-2005-072) - page 4 / 32

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futures and options. In its filing with the Commission, Amex provided a description of the silver

market.

17

1.

The OTC Market

The OTC market trades on a 24-hour continuous basis and accounts for the substantial

portion of global silver trading. The London OTC market is the largest silver clearing market.

The Exchange believes the period of greatest liquidity in the silver market is typically that time

of day when trading in the European time zone overlaps with trading in the United States. This

occurs when the OTC market trading in New York, London, Zurich and other centers coincides

with futures and options trading on the Commodity Exchange, Inc. (“COMEX”).18 This period

lasts for approximately five (5) hours19 each New York business day, from 8:25 a.m. – 1:25 p.m.

Eastern Time (“ET”).

The OTC market has no formal structure and no open-outcry meeting place. The main

centers of the OTC market are London (the largest market), New York, and Zurich. Bullion

dealers have offices around the world, and most of the world’s major bullion dealers are either

members or associate members of the London Bullion Market Association (“LBMA”).

20

17

See Notice, supra note 5.

18

COMEX is a division of the New York Mercantile Exchange, Inc. (“NYMEX”) where silver futures contracts and related options are traded. The open outcry trading hours of the COMEX silver futures contract is from 8:25 a.m. to 1:25 p.m. ET Monday through Friday. NYMEX ACCESS®, an electronic trading system, is open for price discovery on COMEX silver futures contracts from 2:00 p.m. Monday afternoon until 8:00 a.m. Friday morning ET; and from 7:00 p.m. Sunday night until Monday morning at 8:00 a.m. ET

19

Telephone conference between Jeffrey Burns, Associate General Counsel, Amex, and Florence Harmon, Senior Special Counsel, Division of Market Regulation, Commission, on January 13, 2006.

20

Further information about the LBMA may be found at http://www.lbma.org.uk. There are currently nine (9) market-making members of the LBMA, five of which offer clearing services, and 51 full members.

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