Self-Regulatory Organizations; Pacific Exchange, Inc. (n/k/a NYSE Arca, Inc.); Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change and Amendment No. 1 Thereto Relating to the Trading of Shares of the iShares® Silver Trust Pursuant to Unlisted Trading Privileges, 14977-14982 [E6-4270]
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Federal Register / Vol. 71, No. 57 / Friday, March 24, 2006 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53520; File No. SR–PCX–
2005–117]
Self-Regulatory Organizations; Pacific
Exchange, Inc. (n/k/a NYSE Arca, Inc.);
Notice of Filing and Order Granting
Accelerated Approval of Proposed
Rule Change and Amendment No. 1
Thereto Relating to the Trading of
Shares of the iShares Silver Trust
Pursuant to Unlisted Trading
Privileges
March 20, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
11, 2005, the Pacific Exchange, Inc. (n/
k/a NYSE Arca, Inc.) (‘‘Exchange’’),3
through its wholly owned subsidiary
PCX Equities, Inc. (n/k/a NYSE Arca
Equities, Inc.), has filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange
proposes to amend the rules governing
Archipelago Exchange, LLC (n/k/a
NYSE Arca, LLC), the equities trading
facility of NYSE Arca Equities, Inc. On
March 3, 2006, the Exchange filed
Amendment No. 1 to the proposed rule
change.4 The Commission is publishing
this notice to solicit comments on the
proposed rule change, as amended, from
interested persons and is approving the
proposal on an accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange, through its whollyowned subsidiary, NYSE Arca Equities,
Inc., proposes to amend its rules
governing the Archipelago Exchange (n/
k/a NYSE Arca MarketPlace), the
equities trading facility of NYSE Arca
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 On March 6, 2006, the Pacific Exchange, Inc.
(‘‘PCX’’), filed with the Commission a proposed rule
change, which was effective upon filing, to change
the name of the Exchange, as well as several other
related entities, to reflect Archipelago’s recent
acquisition of PCX and the merger of the NYSE with
Archipelago. See File No. SR–PCX–2006–24. All
references herein have been changed to reflect these
transactions. Telephone conference between David
Strandberg, Director, NYSE Arca Equities Inc., and
Florence E. Harmon, Senior Special Counsel,
Division of Market Regulation (‘‘Division’’),
Commission, on March 10, 2006.
4 In Amendment No. 1, the Exchange clarified
and supplemented certain aspects of its proposal.
Amendment No. 1 replaces and supplements the
information provided in various sections of the
Exchange’s Form 19b–4.
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Equities, Inc. The Exchange proposes to
trade, pursuant to unlisted trading
privileges (‘‘UTP’’), shares (‘‘Shares’’) of
the iShares Silver Trust (the ‘‘Trust’’).5
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change. The text of
these statements may be examined at
the places specified in Item III below,
and is set forth in Sections A, B, and C
below.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to trade the
Shares pursuant to UTP under NYSE
Arca Equities, Inc. Rule 8.201. Under
NYSE Arca Equities, Inc. Rule 8.201,
which the Exchange adopted in January
2005,6 the Exchange may propose to list
and/or trade pursuant to UTP
‘‘Commodity-Based Trust Shares.’’ 7 The
Exchange currently trades shares of the
iShares COMEX Gold Trust 8 and the
streetTRACKS Gold Trust 9 pursuant to
UTP under NYSE Arca Equities, Inc.
Rule 8.201. The American Stock
Exchange LLC (‘‘Amex’’) has filed a rule
proposal to list and trade the Shares,10
which the Commission approved on
March 20, 2006.11
The Shares represent beneficial
ownership interests in the net assets of
the Trust consisting primarily of silver
bullion (‘‘silver’’). The investment
objective of the Trust is for the Shares
to reflect the performance of the price of
silver, less the Trust’s expenses.
5 iShares is a registered trademark of Barclays
Global Investors, N.A.
6 See Securities Exchange Act Release No. 51067
(January 21, 2005), 70 FR 3952 (January 27, 2005)
(approving the listing and trading of CommodityBased Trust Shares and trading of shares of the
iShares COMEX Gold Trust pursuant to UTP).
7 Commodity-Based Trust Shares are securities
issued by a trust that represent investors’ discrete
identifiable and undivided beneficial ownership
interest in the commodities deposited into the trust.
Unlike trust issued receipts (‘‘TIRs’’), CommodityBased Trust Shares hold one or more physical
commodities, rather than one or more discrete
securities.
8 See supra, note 7.
9 See Securities Exchange Act Release No. 34–
51245 (February 23, 2005), 70 FR 10731 (March 4,
2005) (approving the trading of shares of the
streetTRACKS Gold Trust pursuant to UTP).
10 See Securities Exchange Act Release No. 53130
(January 17, 2006), 71 FR 3570 (January 23, 2006)
(SR–AMEX–2005–072) (‘‘Amex Notice’’).
11 See Securities Exchange Act Release No. 53521
(March 20, 2006) (‘‘Amex Order’’).
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14977
(a) The Shares
A description of the silver and the
Shares, the operation of the Trust, and
other information about the Shares is set
forth in the Amex Notice and Amex
Order. To summarize, issuances of
Shares will be made only in baskets of
50,000 Shares or multiples thereof
(‘‘Baskets’’ or ‘‘Basket Aggregations’’).
The Trust will issue and redeem the
Shares on a continuous basis, by or
through participants that have entered
into participant agreements (each, an
‘‘Authorized Participant’’)12 with
Barclays Global Investors International,
Inc. (the ‘‘Sponsor’’) and The Bank of
New York (the ‘‘Trustee’’ or ‘‘BNY’’).
Baskets will be issued as an in-kind
exchange for a corresponding amount of
silver. The basket amount of silver,
measured in ounces (the ‘‘Basket Silver
Amount’’) will be determined on each
business day by the Trustee.13 The
Basket Silver Amount necessary for the
creation of a Basket will slightly
diminish each day depending on the
Trust’s daily expense accrual.14
Authorized Participants that wish to
purchase a Basket must transfer the
Basket Silver Amount to the Trust in
exchange for a Basket of Shares. Baskets
are then separable upon issuance into
the Shares that will be traded on NYSE
Arca MarketPlace on a UTP basis.15
The Shares will not be individually
redeemable but will only be redeemable
12 An ‘‘Authorized Participant’’ is a person, who
at the time of submitting to the trustee an order to
create or redeem one or more Baskets, (i) is a
registered broker-dealer, (ii) is a Depository Trust
Company Participant or an Indirect Participant and
(iii) has in effect a valid Authorized Participant
Agreement.
13 On each business day, the Trustee will make
available immediately prior to the opening of
trading on the Amex, the Indicative Basket Silver
Amount for the creation of a Basket. The Sponsor
will also make the next day’s Indicative Basket
Silver Amount available on the Trust’s Web site at
https://www.iShares.com shortly after 4 p.m. ET
each business day. The Amex stated that the Basket
Silver Amount, Indicative Basket Silver Amount
and net asset value (‘‘NAV’’) will be publicly
available simultaneously to all market participants
(to avoid any informational advantage) on either the
Trust’s Web site or the Amex Web site. These items
will also be communicated to Authorized
Participants via facsimile or electronic mail
message.
14 According to the Amex Notice, the initial
Basket Silver Amount is 500,000 ounces of silver
(with each Share initially representing 10 ounces of
silver). 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.
15 Shares are separate and distinct from the
underlying silver comprising the portfolio of the
Trust. The Exchange expects that the number of
outstanding Shares will increase and decrease as a
result of in-kind deposits and withdrawals of the
underlying silver.
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14978
Federal Register / Vol. 71, No. 57 / Friday, March 24, 2006 / Notices
in Baskets. To redeem, an Authorized
Participant will be required to
accumulate enough Shares to constitute
a Basket (i.e., 50,000 Shares).
Authorized Participants that wish to
redeem a Basket will receive the Basket
Silver Amount in exchange for each
Basket surrendered. The operation of
the Trust and creation and redemption
process is described in more detail in
the Amex Notice and Order.
When calculating the net asset value
(‘‘NAV’’) per Share, the Trustee will
value the silver held by the Trust on the
basis of the day’s announced London
silver fix price. The calculation
methodology for the NAV is described
in more detail in the Amex Notice.
After the NAV is determined, at or
about 4 p.m. Eastern Time (‘‘ET’’) each
business day, the Trustee will then
determine the Basket Silver Amount for
orders placed by Authorized
Participants received before 4 p.m. ET
that day. The Trustee 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 Shares on the next
business day. Thus, although
Authorized Participants place orders to
purchase Shares throughout the trading
day, the actual Basket Silver Amount is
determined at 4 p.m. ET or shortly
thereafter.
After 4 p.m. ET each business day, the
Trustee and the Sponsor will
disseminate the NAV for the Shares, the
Basket Silver Amount (for orders
properly placed by 4 p.m. ET 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 the Trustee to all
Authorized Participants via facsimile or
electronic mail message and on the
Trust’s Web site at https://
www.iShares.com (to which the
Exchange will provide a link).
The Sponsor fee, in the absence of any
extraordinary expenses and liabilities, is
established at 0.50% of the net assets of
the Trust. As a result, assuming there is
no extraordinary movement in the intraday market price of silver, the amount
of silver by which the Basket Silver
Amount will decrease each day will be
predictable (i.e., 1/365th of the net asset
value of the Trust multiplied by 0.50%).
Given the anticipated predictability of
the daily decline in the Basket Silver
Amount, as stated, the Trustee will
disclose and disseminate the Indicative
Basket Silver Amount for the next
business day shortly after 4 p.m. ET.
Authorized Participants may use the
Indicative Basket Silver Amount as
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18:26 Mar 23, 2006
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guidance regarding the amount of silver
expected to be deposited with the
custodian, JP Morgan Chase Bank, N.A.,
London Branch, in connection with the
issuance of Shares on the next business
day.
As a result, the amount of silver
required for the Basket Silver Amount is
not disseminated during the trading day
to correspond to changes in the value of
silver as measured by spot silver prices.
Before 4 p.m. ET, Authorized
Participants may use the Indicative
Basket Silver Amount published by the
Sponsor and the Trustee the day before
as guidance in respect of the amount of
silver that they may expect to be
required to deposit. But if the Indicative
Basket Silver Amount published by the
Sponsor and the Trustee turns out to be
incorrect (for example, because the
Trust incurred an extraordinary expense
such as legal fees in excess of the
amount assumed by the Sponsor), the
amount actually determined by the
Trustee will prevail, resulting in a
greater decrease in the Basket Silver
Amount.
(b) Dissemination of Information About
Silver Prices, the Shares, and the
Indicative Trust Value
1. Availability of Information Regarding
Silver Prices
Although the spot price of silver will
not be disseminated over the facilities of
Consolidated Tape Association
(‘‘CTA’’), the last sale price for the
Shares, as is the case for all equity
securities traded on the Exchange, will
be disseminated over the CTA’s
Network B. In addition, there is a
considerable amount of silver price and
market information available on public
Web sites and through professional and
subscription services.
Investors may obtain on a 24-hour
basis silver pricing information based
on the spot price of an ounce of silver
from various financial information
service providers, such as Reuters and
Bloomberg. In addition, the daily
London silver fix is also disseminated
by various market data vendors and is
available from the Web site of the
London Bullion Market Association
(‘‘LBMA’’). Reuters and Bloomberg
provide at no charge on their Web sites
delayed information regarding the spot
price of silver and last sale prices of
silver futures contracts and related
options, as well as information about
news and developments in the silver
market. Reuters and Bloomberg also
offer a professional service to
subscribers for a fee that provides
information on silver prices directly
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Sfmt 4703
from market participants.16 Complete
real-time data for silver futures contracts
and options prices traded on the
COMEX, a division of the New York
Mercantile Exchange, Inc. (‘‘NYMEX’’),
is available by subscription from
Reuters and Bloomberg and also on a
delayed basis free of charge on the
NYMEX Web site at https://
www.nymex.com. The Exchange also
notes that there are a variety of other
public Web sites providing information
on silver, ranging from those
specializing in precious metals to sites
maintained by major newspapers, such
as The Wall Street Journal. Current
silver spot prices are also generally
available with bid/ask spreads from
silver bullion dealers.
The Exchange will provide at no
charge on its Web site at https://
www.archipelago.com,17 via a link to
the Trust’s Web site, updated bids and
offers indicative of the spot price (i.e.,
real time information) of silver.18
2. Availability of Information Regarding
Silver Shares
The Web site for the Trust, which will
be publicly accessible at no charge, will
contain the following information: (a)
The prior business day’s NAV and the
reported closing price; (b) the mid-point
of the bid-ask price in relation to the
NAV as of the time the NAV is
calculated (the ‘‘Bid-Ask Price’’); (c)
calculation of the premium or discount
of such price against such NAV; (d) data
in chart form displaying the frequency
distribution of discounts and premiums
of the Bid-Ask Price against the NAV,
within appropriate ranges for each of
the four previous calendar quarters; (e)
the Basket Silver Amount; (f) the
Indicative Basket Silver Amount; (g) the
16 According to the Amex Notice, EBS, a Londonbased provider of foreign exchange trading
solutions, also provides an electronic trading
platform to institutions such as bullion banks and
dealers for the trading of spot silver, as well as a
feed of live streaming prices to Reuters and
Moneyline Telerate subscribers. Approximately 4
million ounces in silver are traded each day over
the EBS trading platform. See Amex Notice,
footnote 34; see also https://www.ebs.com.
17 NYSE Arca Inc.’s new Web site is https://
www.nysearca.com. Telephone conference between
David Strandberg, Director, NYSE Arca Equities
Inc., and Florence E. Harmon, Senior Special
Counsel, Division, Commission, on March 20, 2006.
18 The Trust Web site’s silver spot price will be
provided by TheBullionDesk at https://
www.thebulliondesk.com. The Exchange will
provide a link to the Trust Web site.
TheBullionDesk is not affiliated with the Trust,
Sponsor, Custodian or the Exchange. The silver spot
price is indicative only, constructed using a variety
of sources to compile a spot price that is intended
to represent a theoretical quote that might be
obtained from a market maker from time to time.
The Trust Web site will indicate that there are other
sources for obtaining the silver spot price.
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Prospectus; and (h) other applicable
quantitative information.
As described above, the NAV for the
Trust will be calculated and
disseminated daily. According to the
Amex Notice, the Amex also intends to
disseminate for the Trust on a daily
basis by means of CTA/CQ High Speed
Lines information with respect to the
Indicative Trust Value (‘‘ITV’’) (as
discussed below), recent NAV, and
shares outstanding. As stated, the Trust
Web site will also provide a real-time
indicative silver spot price through
TheBullionDesk at https://
www.thebulliondesk.com, which will be
used to calculate the ITV, according to
the Amex Notice. Notwithstanding that
they will be provided free of charge, the
indicative spot price from the
BullionDesk on the Trust Web site and
the ITV per Share disseminated via the
CTA, will be provided essentially on a
real-time basis.19
The Exchange will make available on
its Web site, https://
www.archipelago.com, daily trading
volume, closing prices, NAV, and the
Basket Silver Amount. The London
silver fix price is readily available from
the LBMA at https://www.lbma.org.uk,
automated quotation systems, published
or other public sources, or online
information services such as Bloomberg
or Reuters. In addition, the Exchange
will provide a hyperlink on its Web site
at https://www.archipelago.com to the
Trust’s Web site at https://
www.iShares.com.
price of silver. The ITV on a per Share
basis should not be viewed as a real
time update of the NAV, which is
calculated only once a day.
The Exchange believes that
dissemination of the ITV based on the
amount of silver required for a Basket
Aggregation provides additional
information that is not otherwise
available to the public and is useful to
professionals and investors in
connection with Shares trading on the
Exchange or the creation or redemption
of Shares. In addition, as noted above,
the Trust’s Web site at https://
www.iShares.com will also provide
from TheBullionDesk updated bids and
offers indicative of the spot price of
silver in the OTC market for the purpose
of disclosing to investors on a real-time
basis the underlying or spot price of
silver.
3. Dissemination of Indicative Trust
Value
As noted above, the Trustee calculates
the NAV of the Trust once each trading
day. In addition, the Trustee causes to
be made available on a daily basis the
required amount of silver to be
deposited in connection with the
issuance of Shares in Basket
Aggregations. In addition, other
investors can request such information
directly from the Trustee.
In order to provide updated
information relating to the Trust for use
by investors, professionals, and
Authorized Persons wishing to create or
redeem Shares, the Amex will
disseminate through the facilities of
CTA an updated ITV. The ITV will be
disseminated on a per Share basis at
least every 15 seconds from 9:30 a.m. to
4:15 p.m. ET. The ITV will be calculated
based on the amount of silver required
for creations and redemptions and a
price of silver derived from updated
bids and offers indicative of the spot
(d) Trading Rules
The Exchange deems the Shares to be
equity securities, thus rendering trading
in the Fund subject to the Exchange’s
existing rules governing the trading of
equity securities. Trading in the Shares
on the Exchange will occur in
accordance with NYSE Arca Equities,
Inc. Rule 7.34(a), except that the Shares
will not be eligible to trade during the
Opening Session (4:00 a.m. to 9:30 a.m.
ET) or the Late Trading Session (4:15
p.m. to 8 p.m. ET). The minimum
trading increment for Shares on the
Exchange will be $0.01.
Further, NYSE Arca Equities, Inc.
Rule 8.201 sets forth certain restrictions
on ETP Holders acting as registered
Market Makers in the Shares to facilitate
surveillance. Pursuant to NYSE Arca
Equities, Inc. Rule 8.201(h), an ETP
Holder acting as a registered Market
Maker in the Shares is required to
provide the Exchange with information
relating to its trading in the underlying
silver, related futures or options on
futures, or any other related derivatives.
NYSE Arca Equities, Inc. Rule 8.201(i)
prohibits an ETP Holder acting as a
19 That these values are subject to an average
delay of 5 to 10 seconds.
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18:26 Mar 23, 2006
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(c) UTP Criteria
The Exchange will cease trading in
the Shares if (a) the listing market stops
trading the Shares because of a
regulatory halt similar to a halt based on
NYSE Arca Equities, Inc. Rule 7.12 or a
halt because the ITV or the value of the
underlying silver is no longer available
as described in the Amex Order; or (b)
the listing market delists the Shares.
Additionally, the Exchange may cease
trading the Shares if such other event
shall occur or condition exists which in
the opinion of the Exchange makes
further dealings on the Exchange
inadvisable.
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14979
registered Market Maker in the Shares
from using any material nonpublic
information received from any person
associated with an ETP Holder or
employee of such person regarding
trading by such person or employee in
the underlying silver, related futures or
options on futures or any other related
derivative (including the Shares). In
addition, NYSE Arca Equities, Inc. Rule
8.201(g) prohibits an ETP Holder acting
as a registered Market Maker in the
Shares from being affiliated with a
market maker in the underlying silver,
related futures or options on futures, or
any other related derivative unless
adequate information barriers are in
place, as provided in NYSE Arca
Equities, Inc. Rule 7.26.
As a general matter, the Exchange has
regulatory jurisdiction over its ETP
Holders and their associated persons,
which include any person or entity
controlling an ETP Holder, as well as a
subsidiary or affiliate of an ETP Holder
that is in the securities business. A
subsidiary or affiliate of an ETP Holder
that does business only in commodities
or futures contracts would not be
subject to Exchange jurisdiction, but the
Exchange could obtain information
regarding the activities of such
subsidiary or affiliate through
surveillance sharing agreements with
regulatory organizations of which such
subsidiary or affiliate is a member.
With respect to trading halts, the
Exchange may consider all relevant
factors in exercising its discretion to
halt or suspend trading in the Shares.
Trading on the Exchange in the Shares
may be halted because of market
conditions or for reasons that, in the
view of the Exchange, make trading in
the Shares inadvisable. These may
include (1) the extent to which
conditions in the underlying silver
market have caused disruptions and/or
lack of trading, or (2) whether other
unusual conditions or circumstances
detrimental to the maintenance of a fair
and orderly market are present. In
addition, trading in the Shares will be
subject to trading halts caused by
extraordinary market volatility pursuant
to the Exchange’s ‘‘circuit breaker’’
rule.20 In addition, the Exchange will
cease trading the Shares if (a) the listing
market stops trading the Shares because
of a regulatory halt similar to NYSE
Arca Equities, Inc. Rule 7.12 or a halt
because the ITV or the value of the
underlying silver is no longer available
as described in the Amex Order, or (b)
the listing market delists the Shares.
Shares will be deemed ‘‘Eligible
Listed Securities,’’ as defined in NYSE
20 See
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NYSE Arca Equities, Inc. Rule 7.12.
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Specifically, the Information Bulletin
will discuss the following: (1) The
procedures for purchases and
redemptions of Shares in Baskets
(including noting that Shares are not
individually redeemable); (2) NYSE
Arca Equities, Inc. Rule 9.2(a),23 which
imposes a duty of due diligence on its
ETP Holders to learn the essential facts
relating to every customer prior to
trading the Shares; (3) how information
regarding the ITV is disseminated; (4)
the requirement that ETP Holders
deliver a prospectus to investors
purchasing newly issued Shares prior to
or concurrently with the confirmation of
a transaction; and (5) trading
(e) Surveillance
information. For example, the
The Exchange intends to utilize its
Information Bulletin will advise ETP
existing surveillance procedures
Holders, prior to the commencement of
applicable to derivative products and
trading, of the prospectus delivery
shares of the streetTRACKS Gold
requirements applicable to the Trust.
Trust 22 to monitor trading in the Shares.
The Exchange notes that investors
The Exchange represents that these
purchasing Shares directly from the
procedures are adequate to properly
Trust (by delivery of the Basket Silver
monitor Exchange trading of the Shares.
Amount) will receive a prospectus. ETP
The Exchange’s current trading
Holders purchasing Shares from the
surveillance focuses on detecting
Trust for resale to investors will deliver
securities trading outside their normal
a prospectus to such investors.
patterns. When such situations are
In addition, the Information Bulletin
detected, surveillance analysis follows
will reference that the Trust is subject
and investigations are opened, where
to various fees and expenses described
appropriate, to review the behavior of
in the Registration Statement and that
all relevant parties for all relevant
trading violations. Also, as noted above, the number of ounces of silver required
to create a basket or to be delivered
pursuant to NYSE Arca Equities, Inc.
upon redemption of a basket will
Rule 8.201(h), the Exchange is able to
gradually decrease over time because
obtain information regarding trading in
the Silver Shares comprising a basket
the Shares and the underlying silver,
will represent a decreasing amount of
silver futures contracts, options on
silver due to the sale of the Silver
silver futures, or any other silver
Trust’s silver to pay Trust expenses.24
derivative, through ETP Holders acting
The Information Bulletin will also
as registered Market Makers, in
reference the fact that there is no
connection with such ETP Holders’
regulated source of last sale information
proprietary or customer trades which
regarding physical silver, that the
they effect on any relevant market. In
Commission has no jurisdiction over the
addition, the Exchange may obtain
trading of silver as a physical
trading information via the Intermarket
commodity, and that the CFTC has
Surveillance Group (‘‘ISG’’) from other
exchanges who are members or affiliates regulatory jurisdiction over the trading
of the ISG. Also, the Exchange has an
23 The Exchange has proposed to amend NYSE
Information Sharing Agreement with the
Arca Equities, Inc. Rule 9.2(a) (‘‘Diligence as to
NYMEX for the purpose of sharing
Accounts’’) to provide that ETP Holders, before
information in connection with trading
recommending a transaction, must have reasonable
in or related to COMEX silver futures
grounds to believe that the recommendation is
suitable for the customer based on any facts
contracts.
Arca Equities, Inc. Rule 7.55, for
purposes of the Intermarket Trading
System (‘‘ITS’’) Plan and therefore will
be subject to the trade through
provisions of NYSE Arca Equities, Inc.
Rule 7.56, which require that ETP
Holders avoid initiating trade-throughs
for ITS securities.
Unless exemptive or no-action relief
is available, the Shares will be subject
to the short sale rule, Rule 10a-1 and
Regulation SHO under the Act.21 If
exemptive or no-action relief is
provided, the Exchange will issue a
notice detailing the terms of the
exemption or relief.
wwhite on PROD1PC61 with NOTICES
(f) Information Bulletin
Prior to the commencement of
trading, the Exchange will inform its
ETP Holders in an Information Bulletin
of the special characteristics and risks
associated with trading the Shares.
21 According to the Amex Notice, the Silver Trust
has requested relief from the Commission in
connection with the trading of the Shares from the
operation of the short sale rule, Rule 10a-1, and
Regulation SHO under the Act.
22 See supra, note 10.
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18:26 Mar 23, 2006
Jkt 208001
disclosed by the customer as to his other security
holdings and as to his financial situation and needs.
Further, the proposed rule amendment provides
that prior to the execution of a transaction
recommended to a non-institutional customer, the
ETP Holders should make reasonable efforts to
obtain information concerning the customer’s
financial status, tax status, investment objectives
and any other information that they believe would
be useful to make a recommendation. See
Amendment No. 1 to SR–PCX–2005–115
(November 21, 2005).
24 Telephone Conference between David
Strandberg, Director, NYSE Arca Equities Inc., and
Florence E. Harmon, Senior Special Counsel,
Division, Commission, on March 10, 2006.
PO 00000
Frm 00149
Fmt 4703
Sfmt 4703
of silver futures contracts and options
on silver futures contracts.
The Information Bulletin will also
discuss any relief, if granted, by the
Commission or the staff from any rules
under the Act.
2. Statutory Basis
The Exchange believes that the
proposed rule change, as amended, is
consistent with Section 6(b) of the Act 25
in general and furthers the objectives of
Section 6(b)(5),26 in particular, in that it
is designed to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transaction in securities, to remove
impediments and perfect the
mechanisms of a free and open market,
and, in general, to protect investors and
the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received from
Members, Participants or Others
Written comments on the proposed
rule change were neither solicited nor
received.
III. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–PCX–2005–117 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–PCX–2005–117. This file
number should be included on the
25 15
26 15
E:\FR\FM\24MRN1.SGM
U.S.C. 78s(b).
U.S.C. 78s(b)(5).
24MRN1
Federal Register / Vol. 71, No. 57 / Friday, March 24, 2006 / Notices
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of NYSE Arca, Inc.
All comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–PCX–2005–117 and should
be submitted on or before April 14,
2006.
notes that it previously approved the
listing and trading of the Shares on the
Amex.31 The Commission also finds that
the proposal is consistent with Rule
12f–5 under the Act,32 which provides
that an exchange shall not extend UTP
to a security unless the exchange has in
effect a rule or rules providing for
transactions in the class or type of
security to which the exchange extends
UTP. NYSE Arca Equities, Inc. rules
deem the Shares to be equity securities,
thus trading in the Shares will be
subject to the Exchange’s existing rules
governing the trading of equity
securities.33
The Commission further believes that
the proposal is consistent with Section
11A(a)(1)(C)(iii) of the Act,34 which sets
forth Congress’s finding that it is in the
public interest and appropriate for the
protection of investors and the
maintenance of fair and orderly markets
to assure the availability to brokers,
dealers, and investors of information
with respect to quotations for and
transactions in securities. Quotations for
and last sale information regarding
Silver Shares will be disseminated via
the CTA/CQS. Furthermore, as noted by
the Exchange, various means exist for
investors to obtain reliable silver price
information and thereby monitor the
underlying spot market in silver relative
IV. Commission’s Findings and Order
to the NAV of their Shares.
Granting Accelerated Approval of
Additionally, the Amex will make
Proposed Rule Change
available via the CTA an updated ITV at
The Commission finds that the
least every 15 seconds during regular
proposed rule change, as amended, is
trading hours of 9:30 a.m. to 4:15 p.m.
consistent with the requirements of the
ET.
Act and the rules and regulations
In connection with the Exchange’s
thereunder applicable to a national
UTP of the Shares, the Exchange will
securities exchange.27 In particular, the
cease trading in the Shares if: (a) The
Commission finds that the proposed
listing market stops trading the Shares
rule change is consistent with Section
because of a regulatory halt similar to
28 which requires that
6(b)(5) of the Act,
NYSE Arca Equities, Inc. Rule 7.12 or a
an exchange have rules designed, among halt because the ITV or the value of the
other things, to promote just and
underlying silver is no longer available;
equitable principles of trade, to remove
or (b) if the primary market delists the
impediments to and perfect the
Shares. The Commission notes that, if
mechanism of a free and open market
Silver Shares were to be delisted by
and a national market system, and in
Amex, the Exchange would no longer
general to protect investors and the
have authority to trade Silver Shares
public interest.
pursuant to this order.
In addition, the Commission finds
In support of the portion of the
that the proposal is consistent with
proposal, the Exchange has made the
Section 12(f) of the Act,29 which permits following representations:
an exchange to trade, pursuant to UTP,
a security that is listed and registered on the security is registered on that exchange pursuant
another exchange.30 The Commission
to Section 12 of the Act. Section 12(f) of the Act
wwhite on PROD1PC61 with NOTICES
27 In
approving this rule change, the Commission
notes that it has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
28 15 U.S.C. 78f(b)(5).
29 15 U.S.C. 78l(f).
30 Section 12(a) of the Act, 15 U.S.C. 78l(a),
generally prohibits a broker-dealer from trading a
security on a national securities exchange unless
VerDate Aug<31>2005
18:26 Mar 23, 2006
Jkt 208001
excludes from this restriction trading in any
security to which an exchange ‘‘extends UTP.’’
When an exchange extends UTP to a security, it
allows its members to trade the security as if it were
listed and registered on the exchange even though
it is not so listed and registered.
31 See Amex Order.
32 17 CFR 240.12f–5.
33 See NYSE Arca Equities, Inc. Rule 7.34.
34 15 U.S.C. 78k–1(a)(1)(C)(iii).
PO 00000
Frm 00150
Fmt 4703
Sfmt 4703
14981
1. NYSE Arca, Inc. has appropriate
rules to facilitate transactions in this
type of security in all trading sessions.
2. NYSE Arca, Inc. surveillance
procedures are adequate to properly
monitor the trading of the Shares on the
Exchange.
3. NYSE Arca, Inc. will distribute an
Information Bulletin to its ETP Holders
prior to the commencement of trading of
the Shares on the Exchange that
explains the terms, characteristics, and
risks of trading such shares.
4. NYSE Arca, Inc. will require that
investors purchasing Shares directly
from the Trust (by delivery of the Basket
Silver Amount) will receive a
prospectus and that ETP Holders
purchasing Shares from the Trust for
resale to investors will deliver a
prospectus to such investors.
5. The Exchange will cease trading in
the Shares if: (a) the listing market stops
trading the Shares because of a
regulatory halt similar to NYSE Arca
Equities, Inc. 7.12 or a halt because the
ITV or the value of the underlying silver
is no longer available as described in the
Amex Order; or (b) if the primary
market delists the Shares.
This approval order is conditioned on
NYSE Arca, Inc.’s adherence to these
representations.
The Commission finds good cause for
approving this proposed rule change, as
amended, before the thirtieth day after
the publication of notice thereof in the
Federal Register. As noted previously,
the Commission previously found that
the listing and trading of these Shares
on the Amex is consistent with the
Act.35 The Commission presently is not
aware of any issue that would cause it
to revisit that earlier finding or preclude
the trading of these funds on the
Exchange pursuant to UTP. Therefore,
accelerating approval of this proposed
rule change should benefit investors by
creating, without undue delay,
additional competition in the market for
these Shares.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (SR–PCX–2005–
117), as amended, is hereby approved
on an accelerated basis.36
35 See
36 15
E:\FR\FM\24MRN1.SGM
Amex Order.
U.S.C. 78s(b)(2).
24MRN1
14982
Federal Register / Vol. 71, No. 57 / Friday, March 24, 2006 / Notices
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.37
Nancy M. Morris,
Secretary.
[FR Doc. E6–4270 Filed 3–23–06; 8:45 am]
Ralls, Shelby, St. Clair, St. Francois,
Stone, Taney, and Webster.
Illinois: Jackson, Monroe, Randolph,
and Union.
The Interest Rates are:
Percent
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 10428 and # 10429;
Missouri Disaster # MO–00002]
Notice of a Disaster Declaration
U.S. Small Business
Administration.
SUMMARY: This is a Notice of the
Presidential declaration of a major
disaster for the State of Missouri
(FEMA–1631–DR), dated March 16,
2006.
Incident: Severe storms, tornadoes,
and flooding.
Incident Period: March 11, 2006
through March 13, 2006.
Effective Date: March 16, 2006.
Physical Loan Application Deadline
Date: May 15, 2006.
Economic Injury (EIDL) Loan
Application Deadline Date: December
15, 2006.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, National Processing
and Disbursement Center, 14925
Kingsport Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
March 16, 2006, applications for
disaster loans may be filed at the
address listed above or other locally
announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties (Physical Damage and
Economic Injury Loans):
Christian, Hickory, Johnson, Monroe,
Perry, Pettis, Randolph, Saline, and
Ste. Genevieve.
Contiguous Counties (Economic Injury
Loans Only):
Missouri: Audrain, Benton, Bollinger,
Boone, Camden, Cape Girardeau,
Carroll, Cass, Chariton, Cooper,
Dallas, Douglas, Greene, Henry,
Howard, Jackson, Jefferson,
Lafayette, Lawrence, Macon,
Madison, Marion, Morgan, Polk,
wwhite on PROD1PC61 with NOTICES
AGENCY:
37 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
18:26 Mar 23, 2006
Jkt 208001
Homeowners with Credit Available
Elsewhere ...................................
Homeowners without Credit Available Elsewhere ...........................
Businesses with Credit Available
Elsewhere ...................................
Businesses & Small Agricultural
Cooperatives
without
Credit
Available Elsewhere ....................
Other (Including Non-Profit Organizations) with Credit Available
Elsewhere ...................................
Businesses And Non-Profit Organizations without Credit Available
Elsewhere ...................................
5.750
7.408
4.000
4.000
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #10316 and #10317]
Oklahoma Disaster Number OK–00002
Small Business Administration.
Amendment 3.
AGENCY:
SUMMARY: This is an amendment of the
Presidential declaration of a major
disaster for the State of Oklahoma
(FEMA–1623–DR), dated 01/10/2006.
Incident: Severe Wildfire Threat.
Incident Period: 11/27/2005 and
continuing.
Effective Date: 03/13/2006.
Physical Loan Application Deadline
Date: 04/10/2006.
EIDL Loan Application Deadline Date:
10/10/2006.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, National Processing
And Disbursement Center, 14925
Kingsport Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for the State of Oklahoma,
dated 01/10/2006, is hereby amended to
extend the deadline for filing
applications for physical damages as a
result of this disaster to 04/10/2006.
Fmt 4703
Sfmt 4703
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
Texas Disaster Number TX–00097
Small Business Administration.
Amendment 1.
AGENCY:
5.000
BILLING CODE 8025–01–P
Frm 00151
Herbert L. Mitchell,
Associate Administrator for Disaster
Assistance.
[FR Doc. E6–4258 Filed 3–23–06; 8:45 am]
[Disaster Declaration #10322 and #10323]
Herbert L. Mitchell,
Associate Administrator for Disaster
Assistance.
[FR Doc. E6–4261 Filed 3–23–06; 8:45 am]
PO 00000
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
2.875
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
ACTION:
All other information in the original
declaration remains unchanged.
ACTION:
SUMMARY: This is an amendment of the
Presidential declaration of a major
disaster for the State of Texas (FEMA–
1624–DR), dated 01/11/2006.
Incident: Extreme Wildfire Threat.
Incident Period: 12/01/2005 and
continuing.
Effective Date: 03/13/2006.
Physical Loan Application Deadline
Date: 04/12/2006.
EIDL Loan Application Deadline Date:
10/11/2006.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, National Processing
And Disbursement Center, 14925
Kingsport Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for the State of Texas, dated
01/11/2006, is hereby amended to
extend the deadline for filing
applications for physical damages as a
result of this disaster to 04/12/2006.
All other information in the original
declaration remains unchanged.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Herbert L. Mitchell,
Associate Administrator for Disaster
Assistance.
[FR Doc. E6–4259 Filed 3–23–06; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #10322 and #10323]
Texas Disaster Number TX–00097
Small Business Administration.
Amendment 2.
AGENCY:
ACTION:
E:\FR\FM\24MRN1.SGM
24MRN1
]]>Agencies
[Federal Register Volume 71, Number 57 (Friday, March 24, 2006)]
[Notices]
[Pages 14977-14982]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-4270]
[[Page 14977]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53520; File No. SR-PCX-2005-117]
Self-Regulatory Organizations; Pacific Exchange, Inc. (n/k/a NYSE
Arca, Inc.); Notice of Filing and Order Granting Accelerated Approval
of Proposed Rule Change and Amendment No. 1 Thereto Relating to the
Trading of Shares of the iShares[reg] Silver Trust Pursuant to Unlisted
Trading Privileges
March 20, 2006.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 11, 2005, the Pacific Exchange, Inc. (n/k/a NYSE Arca, Inc.)
(``Exchange''),\3\ through its wholly owned subsidiary PCX Equities,
Inc. (n/k/a NYSE Arca Equities, Inc.), has filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
the Exchange. The Exchange proposes to amend the rules governing
Archipelago Exchange, LLC (n/k/a NYSE Arca, LLC), the equities trading
facility of NYSE Arca Equities, Inc. On March 3, 2006, the Exchange
filed Amendment No. 1 to the proposed rule change.\4\ The Commission is
publishing this notice to solicit comments on the proposed rule change,
as amended, from interested persons and is approving the proposal on an
accelerated basis.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ On March 6, 2006, the Pacific Exchange, Inc. (``PCX''),
filed with the Commission a proposed rule change, which was
effective upon filing, to change the name of the Exchange, as well
as several other related entities, to reflect Archipelago's recent
acquisition of PCX and the merger of the NYSE with Archipelago. See
File No. SR-PCX-2006-24. All references herein have been changed to
reflect these transactions. Telephone conference between David
Strandberg, Director, NYSE Arca Equities Inc., and Florence E.
Harmon, Senior Special Counsel, Division of Market Regulation
(``Division''), Commission, on March 10, 2006.
\4\ In Amendment No. 1, the Exchange clarified and supplemented
certain aspects of its proposal. Amendment No. 1 replaces and
supplements the information provided in various sections of the
Exchange's Form 19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange, through its wholly-owned subsidiary, NYSE Arca
Equities, Inc., proposes to amend its rules governing the Archipelago
Exchange (n/k/a NYSE Arca MarketPlace), the equities trading facility
of NYSE Arca Equities, Inc. The Exchange proposes to trade, pursuant to
unlisted trading privileges (``UTP''), shares (``Shares'') of the
iShares[reg] Silver Trust (the ``Trust'').\5\
---------------------------------------------------------------------------
\5\ iShares[reg] is a registered trademark of Barclays Global
Investors, N.A.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change. The
text of these statements may be examined at the places specified in
Item III below, and is set forth in Sections A, B, and C below.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to trade the Shares pursuant to UTP under
NYSE Arca Equities, Inc. Rule 8.201. Under NYSE Arca Equities, Inc.
Rule 8.201, which the Exchange adopted in January 2005,\6\ the Exchange
may propose to list and/or trade pursuant to UTP ``Commodity-Based
Trust Shares.'' \7\ The Exchange currently trades shares of the iShares
COMEX Gold Trust \8\ and the streetTRACKS Gold Trust \9\ pursuant to
UTP under NYSE Arca Equities, Inc. Rule 8.201. The American Stock
Exchange LLC (``Amex'') has filed a rule proposal to list and trade the
Shares,\10\ which the Commission approved on March 20, 2006.\11\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 51067 (January 21,
2005), 70 FR 3952 (January 27, 2005) (approving the listing and
trading of Commodity-Based Trust Shares and trading of shares of the
iShares COMEX Gold Trust pursuant to UTP).
\7\ Commodity-Based Trust Shares are securities issued by a
trust that represent investors' discrete identifiable and undivided
beneficial ownership interest in the commodities deposited into the
trust. Unlike trust issued receipts (``TIRs''), Commodity-Based
Trust Shares hold one or more physical commodities, rather than one
or more discrete securities.
\8\ See supra, note 7.
\9\ See Securities Exchange Act Release No. 34-51245 (February
23, 2005), 70 FR 10731 (March 4, 2005) (approving the trading of
shares of the streetTRACKS Gold Trust pursuant to UTP).
\10\ See Securities Exchange Act Release No. 53130 (January 17,
2006), 71 FR 3570 (January 23, 2006) (SR-AMEX-2005-072) (``Amex
Notice'').
\11\ See Securities Exchange Act Release No. 53521 (March 20,
2006) (``Amex Order'').
---------------------------------------------------------------------------
The Shares represent beneficial ownership interests in the net
assets of the Trust consisting primarily of silver bullion
(``silver''). The investment objective of the Trust is for the Shares
to reflect the performance of the price of silver, less the Trust's
expenses.
(a) The Shares
A description of the silver and the Shares, the operation of the
Trust, and other information about the Shares is set forth in the Amex
Notice and Amex Order. To summarize, issuances of Shares will be made
only in baskets of 50,000 Shares or multiples thereof (``Baskets'' or
``Basket Aggregations''). The Trust will issue and redeem the Shares on
a continuous basis, by or through participants that have entered into
participant agreements (each, an ``Authorized Participant'')\12\ with
Barclays Global Investors International, Inc. (the ``Sponsor'') and The
Bank of New York (the ``Trustee'' or ``BNY'').
---------------------------------------------------------------------------
\12\ An ``Authorized Participant'' is a person, who at the time
of submitting to the trustee an order to create or redeem one or
more Baskets, (i) is a registered broker-dealer, (ii) is a
Depository Trust Company Participant or an Indirect Participant and
(iii) has in effect a valid Authorized Participant Agreement.
---------------------------------------------------------------------------
Baskets will be issued as an in-kind exchange for a corresponding
amount of silver. The basket amount of silver, measured in ounces (the
``Basket Silver Amount'') will be determined on each business day by
the Trustee.\13\ The Basket Silver Amount necessary for the creation of
a Basket will slightly diminish each day depending on the Trust's daily
expense accrual.\14\ Authorized Participants that wish to purchase a
Basket must transfer the Basket Silver Amount to the Trust in exchange
for a Basket of Shares. Baskets are then separable upon issuance into
the Shares that will be traded on NYSE Arca MarketPlace on a UTP
basis.\15\
---------------------------------------------------------------------------
\13\ On each business day, the Trustee will make available
immediately prior to the opening of trading on the Amex, the
Indicative Basket Silver Amount for the creation of a Basket. The
Sponsor will also make the next day's Indicative Basket Silver
Amount available on the Trust's Web site at https://www.iShares.com
shortly after 4 p.m. ET each business day. The Amex stated that the
Basket Silver Amount, Indicative Basket Silver Amount and net asset
value (``NAV'') will be publicly available simultaneously to all
market participants (to avoid any informational advantage) on either
the Trust's Web site or the Amex Web site. These items will also be
communicated to Authorized Participants via facsimile or electronic
mail message.
\14\ According to the Amex Notice, the initial Basket Silver
Amount is 500,000 ounces of silver (with each Share initially
representing 10 ounces of silver). 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.
\15\ Shares are separate and distinct from the underlying silver
comprising the portfolio of the Trust. The Exchange expects that the
number of outstanding Shares will increase and decrease as a result
of in-kind deposits and withdrawals of the underlying silver.
---------------------------------------------------------------------------
The Shares will not be individually redeemable but will only be
redeemable
[[Page 14978]]
in Baskets. To redeem, an Authorized Participant will be required to
accumulate enough Shares to constitute a Basket (i.e., 50,000 Shares).
Authorized Participants that wish to redeem a Basket will receive the
Basket Silver Amount in exchange for each Basket surrendered. The
operation of the Trust and creation and redemption process is described
in more detail in the Amex Notice and Order.
When calculating the net asset value (``NAV'') per Share, the
Trustee will value the silver held by the Trust on the basis of the
day's announced London silver fix price. The calculation methodology
for the NAV is described in more detail in the Amex Notice.
After the NAV is determined, at or about 4 p.m. Eastern Time
(``ET'') each business day, the Trustee will then determine the Basket
Silver Amount for orders placed by Authorized Participants received
before 4 p.m. ET that day. The Trustee 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 Shares on the next business day. Thus, although
Authorized Participants place orders to purchase Shares throughout the
trading day, the actual Basket Silver Amount is determined at 4 p.m. ET
or shortly thereafter.
After 4 p.m. ET each business day, the Trustee and the Sponsor will
disseminate the NAV for the Shares, the Basket Silver Amount (for
orders properly placed by 4 p.m. ET 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 the
Trustee to all Authorized Participants via facsimile or electronic mail
message and on the Trust's Web site at https://www.iShares.com (to which
the Exchange will provide a link).
The Sponsor fee, in the absence of any extraordinary expenses and
liabilities, is established at 0.50% of the net assets of the Trust. As
a result, assuming there is no extraordinary movement in the intra-day
market price of silver, the amount of silver by which the Basket Silver
Amount will decrease each day will be predictable (i.e., 1/365th of the
net asset value of the Trust multiplied by 0.50%). Given the
anticipated predictability of the daily decline in the Basket Silver
Amount, as stated, the Trustee will disclose and disseminate the
Indicative Basket Silver Amount for the next business day shortly after
4 p.m. ET. Authorized Participants may use the Indicative Basket Silver
Amount as guidance regarding the amount of silver expected to be
deposited with the custodian, JP Morgan Chase Bank, N.A., London
Branch, in connection with the issuance of Shares on the next business
day.
As a result, the amount of silver required for the Basket Silver
Amount is not disseminated during the trading day to correspond to
changes in the value of silver as measured by spot silver prices.
Before 4 p.m. ET, Authorized Participants may use the Indicative Basket
Silver Amount published by the Sponsor and the Trustee the day before
as guidance in respect of the amount of silver that they may expect to
be required to deposit. But if the Indicative Basket Silver Amount
published by the Sponsor and the Trustee turns out to be incorrect (for
example, because the Trust incurred an extraordinary expense such as
legal fees in excess of the amount assumed by the Sponsor), the amount
actually determined by the Trustee will prevail, resulting in a greater
decrease in the Basket Silver Amount.
(b) Dissemination of Information About Silver Prices, the Shares, and
the Indicative Trust Value
1. Availability of Information Regarding Silver Prices
Although the spot price of silver will not be disseminated over the
facilities of Consolidated Tape Association (``CTA''), the last sale
price for the Shares, as is the case for all equity securities traded
on the Exchange, will be disseminated over the CTA's Network B. In
addition, there is a considerable amount of silver price and market
information available on public Web sites and through professional and
subscription services.
Investors may obtain on a 24-hour basis silver pricing information
based on the spot price of an ounce of silver from various financial
information service providers, such as Reuters and Bloomberg. In
addition, the daily London silver fix is also disseminated by various
market data vendors and is available from the Web site of the London
Bullion Market Association (``LBMA''). Reuters and Bloomberg provide at
no charge on their Web sites delayed information regarding the spot
price of silver and last sale prices of silver futures contracts and
related options, as well as information about news and developments in
the silver market. Reuters and Bloomberg also offer a professional
service to subscribers for a fee that provides information on silver
prices directly from market participants.\16\ Complete real-time data
for silver futures contracts and options prices traded on the COMEX, a
division of the New York Mercantile Exchange, Inc. (``NYMEX''), is
available by subscription from Reuters and Bloomberg and also on a
delayed basis free of charge on the NYMEX Web site at https://
www.nymex.com. The Exchange also notes that there are a variety of
other public Web sites providing information on silver, ranging from
those specializing in precious metals to sites maintained by major
newspapers, such as The Wall Street Journal. Current silver spot prices
are also generally available with bid/ask spreads from silver bullion
dealers.
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\16\ According to the Amex Notice, EBS, a London-based provider
of foreign exchange trading solutions, also provides an electronic
trading platform to institutions such as bullion banks and dealers
for the trading of spot silver, as well as a feed of live streaming
prices to Reuters and Moneyline Telerate subscribers. Approximately
4 million ounces in silver are traded each day over the EBS trading
platform. See Amex Notice, footnote 34; see also https://www.ebs.com.
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The Exchange will provide at no charge on its Web site at https://
www.archipelago.com,\17\ via a link to the Trust's Web site, updated
bids and offers indicative of the spot price (i.e., real time
information) of silver.\18\
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\17\ NYSE Arca Inc.'s new Web site is https://www.nysearca.com.
Telephone conference between David Strandberg, Director, NYSE Arca
Equities Inc., and Florence E. Harmon, Senior Special Counsel,
Division, Commission, on March 20, 2006.
\18\ The Trust Web site's silver spot price will be provided by
TheBullionDesk at https://www.thebulliondesk.com. The Exchange will
provide a link to the Trust Web site. TheBullionDesk is not
affiliated with the Trust, Sponsor, Custodian or the Exchange. The
silver spot price is indicative only, constructed using a variety of
sources to compile a spot price that is intended to represent a
theoretical quote that might be obtained from a market maker from
time to time. The Trust Web site will indicate that there are other
sources for obtaining the silver spot price.
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2. Availability of Information Regarding Silver Shares
The Web site for the Trust, which will be publicly accessible at no
charge, will contain the following information: (a) The prior business
day's NAV and the reported closing price; (b) the mid-point of the bid-
ask price in relation to the NAV as of the time the NAV is calculated
(the ``Bid-Ask Price''); (c) calculation of the premium or discount of
such price against such NAV; (d) data in chart form displaying the
frequency distribution of discounts and premiums of the Bid-Ask Price
against the NAV, within appropriate ranges for each of the four
previous calendar quarters; (e) the Basket Silver Amount; (f) the
Indicative Basket Silver Amount; (g) the
[[Page 14979]]
Prospectus; and (h) other applicable quantitative information.
As described above, the NAV for the Trust will be calculated and
disseminated daily. According to the Amex Notice, the Amex also intends
to disseminate for the Trust on a daily basis by means of CTA/CQ High
Speed Lines information with respect to the Indicative Trust Value
(``ITV'') (as discussed below), recent NAV, and shares outstanding. As
stated, the Trust Web site will also provide a real-time indicative
silver spot price through TheBullionDesk at https://
www.thebulliondesk.com, which will be used to calculate the ITV,
according to the Amex Notice. Notwithstanding that they will be
provided free of charge, the indicative spot price from the BullionDesk
on the Trust Web site and the ITV per Share disseminated via the CTA,
will be provided essentially on a real-time basis.\19\
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\19\ That these values are subject to an average delay of 5 to
10 seconds.
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The Exchange will make available on its Web site, https://
www.archipelago.com, daily trading volume, closing prices, NAV, and the
Basket Silver Amount. The London silver fix price is readily available
from the LBMA at https://www.lbma.org.uk, automated quotation systems,
published or other public sources, or online information services such
as Bloomberg or Reuters. In addition, the Exchange will provide a
hyperlink on its Web site at https://www.archipelago.com to the Trust's
Web site at https://www.iShares.com.
3. Dissemination of Indicative Trust Value
As noted above, the Trustee calculates the NAV of the Trust once
each trading day. In addition, the Trustee causes to be made available
on a daily basis the required amount of silver to be deposited in
connection with the issuance of Shares in Basket Aggregations. In
addition, other investors can request such information directly from
the Trustee.
In order to provide updated information relating to the Trust for
use by investors, professionals, and Authorized Persons wishing to
create or redeem Shares, the Amex will disseminate through the
facilities of CTA an updated ITV. The ITV will be disseminated on a per
Share basis at least every 15 seconds from 9:30 a.m. to 4:15 p.m. ET.
The ITV will be calculated based on the amount of silver required for
creations and redemptions and a price of silver derived from updated
bids and offers indicative of the spot price of silver. The ITV on a
per Share basis should not be viewed as a real time update of the NAV,
which is calculated only once a day.
The Exchange believes that dissemination of the ITV based on the
amount of silver required for a Basket Aggregation provides additional
information that is not otherwise available to the public and is useful
to professionals and investors in connection with Shares trading on the
Exchange or the creation or redemption of Shares. In addition, as noted
above, the Trust's Web site at https://www.iShares.com will also provide
from TheBullionDesk updated bids and offers indicative of the spot
price of silver in the OTC market for the purpose of disclosing to
investors on a real-time basis the underlying or spot price of silver.
(c) UTP Criteria
The Exchange will cease trading in the Shares if (a) the listing
market stops trading the Shares because of a regulatory halt similar to
a halt based on NYSE Arca Equities, Inc. Rule 7.12 or a halt because
the ITV or the value of the underlying silver is no longer available as
described in the Amex Order; or (b) the listing market delists the
Shares. Additionally, the Exchange may cease trading the Shares if such
other event shall occur or condition exists which in the opinion of the
Exchange makes further dealings on the Exchange inadvisable.
(d) Trading Rules
The Exchange deems the Shares to be equity securities, thus
rendering trading in the Fund subject to the Exchange's existing rules
governing the trading of equity securities. Trading in the Shares on
the Exchange will occur in accordance with NYSE Arca Equities, Inc.
Rule 7.34(a), except that the Shares will not be eligible to trade
during the Opening Session (4:00 a.m. to 9:30 a.m. ET) or the Late
Trading Session (4:15 p.m. to 8 p.m. ET). The minimum trading increment
for Shares on the Exchange will be $0.01.
Further, NYSE Arca Equities, Inc. Rule 8.201 sets forth certain
restrictions on ETP Holders acting as registered Market Makers in the
Shares to facilitate surveillance. Pursuant to NYSE Arca Equities, Inc.
Rule 8.201(h), an ETP Holder acting as a registered Market Maker in the
Shares is required to provide the Exchange with information relating to
its trading in the underlying silver, related futures or options on
futures, or any other related derivatives. NYSE Arca Equities, Inc.
Rule 8.201(i) prohibits an ETP Holder acting as a registered Market
Maker in the Shares from using any material nonpublic information
received from any person associated with an ETP Holder or employee of
such person regarding trading by such person or employee in the
underlying silver, related futures or options on futures or any other
related derivative (including the Shares). In addition, NYSE Arca
Equities, Inc. Rule 8.201(g) prohibits an ETP Holder acting as a
registered Market Maker in the Shares from being affiliated with a
market maker in the underlying silver, related futures or options on
futures, or any other related derivative unless adequate information
barriers are in place, as provided in NYSE Arca Equities, Inc. Rule
7.26.
As a general matter, the Exchange has regulatory jurisdiction over
its ETP Holders and their associated persons, which include any person
or entity controlling an ETP Holder, as well as a subsidiary or
affiliate of an ETP Holder that is in the securities business. A
subsidiary or affiliate of an ETP Holder that does business only in
commodities or futures contracts would not be subject to Exchange
jurisdiction, but the Exchange could obtain information regarding the
activities of such subsidiary or affiliate through surveillance sharing
agreements with regulatory organizations of which such subsidiary or
affiliate is a member.
With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares. Trading on the Exchange in the Shares may be
halted because of market conditions or for reasons that, in the view of
the Exchange, make trading in the Shares inadvisable. These may include
(1) the extent to which conditions in the underlying silver market have
caused disruptions and/or lack of trading, or (2) whether other unusual
conditions or circumstances detrimental to the maintenance of a fair
and orderly market are present. In addition, trading in the Shares will
be subject to trading halts caused by extraordinary market volatility
pursuant to the Exchange's ``circuit breaker'' rule.\20\ In addition,
the Exchange will cease trading the Shares if (a) the listing market
stops trading the Shares because of a regulatory halt similar to NYSE
Arca Equities, Inc. Rule 7.12 or a halt because the ITV or the value of
the underlying silver is no longer available as described in the Amex
Order, or (b) the listing market delists the Shares.
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\20\ See NYSE Arca Equities, Inc. Rule 7.12.
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Shares will be deemed ``Eligible Listed Securities,'' as defined in
NYSE
[[Page 14980]]
Arca Equities, Inc. Rule 7.55, for purposes of the Intermarket Trading
System (``ITS'') Plan and therefore will be subject to the trade
through provisions of NYSE Arca Equities, Inc. Rule 7.56, which require
that ETP Holders avoid initiating trade-throughs for ITS securities.
Unless exemptive or no-action relief is available, the Shares will
be subject to the short sale rule, Rule 10a-1 and Regulation SHO under
the Act.\21\ If exemptive or no-action relief is provided, the Exchange
will issue a notice detailing the terms of the exemption or relief.
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\21\ According to the Amex Notice, the Silver Trust has
requested relief from the Commission in connection with the trading
of the Shares from the operation of the short sale rule, Rule 10a-1,
and Regulation SHO under the Act.
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(e) Surveillance
The Exchange intends to utilize its existing surveillance
procedures applicable to derivative products and shares of the
streetTRACKS Gold Trust \22\ to monitor trading in the Shares. The
Exchange represents that these procedures are adequate to properly
monitor Exchange trading of the Shares.
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\22\ See supra, note 10.
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The Exchange's current trading surveillance focuses on detecting
securities trading outside their normal patterns. When such situations
are detected, surveillance analysis follows and investigations are
opened, where appropriate, to review the behavior of all relevant
parties for all relevant trading violations. Also, as noted above,
pursuant to NYSE Arca Equities, Inc. Rule 8.201(h), the Exchange is
able to obtain information regarding trading in the Shares and the
underlying silver, silver futures contracts, options on silver futures,
or any other silver derivative, through ETP Holders acting as
registered Market Makers, in connection with such ETP Holders'
proprietary or customer trades which they effect on any relevant
market. In addition, the Exchange may obtain trading information via
the Intermarket Surveillance Group (``ISG'') from other exchanges who
are members or affiliates of the ISG. Also, the Exchange has an
Information Sharing Agreement with the NYMEX for the purpose of sharing
information in connection with trading in or related to COMEX silver
futures contracts.
(f) Information Bulletin
Prior to the commencement of trading, the Exchange will inform its
ETP Holders in an Information Bulletin of the special characteristics
and risks associated with trading the Shares. Specifically, the
Information Bulletin will discuss the following: (1) The procedures for
purchases and redemptions of Shares in Baskets (including noting that
Shares are not individually redeemable); (2) NYSE Arca Equities, Inc.
Rule 9.2(a),\23\ which imposes a duty of due diligence on its ETP
Holders to learn the essential facts relating to every customer prior
to trading the Shares; (3) how information regarding the ITV is
disseminated; (4) the requirement that ETP Holders deliver a prospectus
to investors purchasing newly issued Shares prior to or concurrently
with the confirmation of a transaction; and (5) trading information.
For example, the Information Bulletin will advise ETP Holders, prior to
the commencement of trading, of the prospectus delivery requirements
applicable to the Trust. The Exchange notes that investors purchasing
Shares directly from the Trust (by delivery of the Basket Silver
Amount) will receive a prospectus. ETP Holders purchasing Shares from
the Trust for resale to investors will deliver a prospectus to such
investors.
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\23\ The Exchange has proposed to amend NYSE Arca Equities, Inc.
Rule 9.2(a) (``Diligence as to Accounts'') to provide that ETP
Holders, before recommending a transaction, must have reasonable
grounds to believe that the recommendation is suitable for the
customer based on any facts disclosed by the customer as to his
other security holdings and as to his financial situation and needs.
Further, the proposed rule amendment provides that prior to the
execution of a transaction recommended to a non-institutional
customer, the ETP Holders should make reasonable efforts to obtain
information concerning the customer's financial status, tax status,
investment objectives and any other information that they believe
would be useful to make a recommendation. See Amendment No. 1 to SR-
PCX-2005-115 (November 21, 2005).
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In addition, the Information Bulletin will reference that the 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 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.\24\ The Information Bulletin 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.
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\24\ Telephone Conference between David Strandberg, Director,
NYSE Arca Equities Inc., and Florence E. Harmon, Senior Special
Counsel, Division, Commission, on March 10, 2006.
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The Information Bulletin will also discuss any relief, if granted,
by the Commission or the staff from any rules under the Act.
2. Statutory Basis
The Exchange believes that the proposed rule change, as amended, is
consistent with Section 6(b) of the Act \25\ in general and furthers
the objectives of Section 6(b)(5),\26\ in particular, in that it is
designed to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transaction in securities, to remove impediments and perfect the
mechanisms of a free and open market, and, in general, to protect
investors and the public interest.
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\25\ 15 U.S.C. 78s(b).
\26\ 15 U.S.C. 78s(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants or Others
Written comments on the proposed rule change were neither solicited
nor received.
III. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, is consistent with the Act. Comments may be
submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-PCX-2005-117 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-PCX-2005-117. This file
number should be included on the
[[Page 14981]]
subject line if e-mail is used. To help the Commission process and
review your comments more efficiently, please use only one method. The
Commission will post all comments on the Commission's Internet Web site
(https://www.sec.gov/rules/sro.shtml). Copies of the submission, all
subsequent amendments, all written statements with respect to the
proposed rule change that are filed with the Commission, and all
written communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for inspection and copying in the Commission's Public
Reference Room. Copies of such filing also will be available for
inspection and copying at the principal office of NYSE Arca, Inc. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-PCX-2005-117 and should be
submitted on or before April 14, 2006.
IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change
The Commission finds that the proposed rule change, as amended, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities
exchange.\27\ In particular, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act,\28\ which
requires that an exchange have rules designed, among other things, to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and in general to protect investors and the public
interest.
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\27\ In approving this rule change, the Commission notes that it
has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
\28\ 15 U.S.C. 78f(b)(5).
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In addition, the Commission finds that the proposal is consistent
with Section 12(f) of the Act,\29\ which permits an exchange to trade,
pursuant to UTP, a security that is listed and registered on another
exchange.\30\ The Commission notes that it previously approved the
listing and trading of the Shares on the Amex.\31\ The Commission also
finds that the proposal is consistent with Rule 12f-5 under the
Act,\32\ which provides that an exchange shall not extend UTP to a
security unless the exchange has in effect a rule or rules providing
for transactions in the class or type of security to which the exchange
extends UTP. NYSE Arca Equities, Inc. rules deem the Shares to be
equity securities, thus trading in the Shares will be subject to the
Exchange's existing rules governing the trading of equity
securities.\33\
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\29\ 15 U.S.C. 78l(f).
\30\ Section 12(a) of the Act, 15 U.S.C. 78l(a), generally
prohibits a broker-dealer from trading a security on a national
securities exchange unless the security is registered on that
exchange pursuant to Section 12 of the Act. Section 12(f) of the Act
excludes from this restriction trading in any security to which an
exchange ``extends UTP.'' When an exchange extends UTP to a
security, it allows its members to trade the security as if it were
listed and registered on the exchange even though it is not so
listed and registered.
\31\ See Amex Order.
\32\ 17 CFR 240.12f-5.
\33\ See NYSE Arca Equities, Inc. Rule 7.34.
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The Commission further believes that the proposal is consistent
with Section 11A(a)(1)(C)(iii) of the Act,\34\ which sets forth
Congress's finding that it is in the public interest and appropriate
for the protection of investors and the maintenance of fair and orderly
markets to assure the availability to brokers, dealers, and investors
of information with respect to quotations for and transactions in
securities. Quotations for and last sale information regarding Silver
Shares will be disseminated via the CTA/CQS. Furthermore, as noted by
the Exchange, various means exist for investors to obtain reliable
silver price information and thereby monitor the underlying spot market
in silver relative to the NAV of their Shares. Additionally, the Amex
will make available via the CTA an updated ITV at least every 15
seconds during regular trading hours of 9:30 a.m. to 4:15 p.m. ET.
---------------------------------------------------------------------------
\34\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
In connection with the Exchange's UTP of the Shares, the Exchange
will cease trading in the Shares if: (a) The listing market stops
trading the Shares because of a regulatory halt similar to NYSE Arca
Equities, Inc. Rule 7.12 or a halt because the ITV or the value of the
underlying silver is no longer available; or (b) if the primary market
delists the Shares. The Commission notes that, if Silver Shares were to
be delisted by Amex, the Exchange would no longer have authority to
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trade Silver Shares pursuant to this order.
In support of the portion of the proposal, the Exchange has made
the following representations:
1. NYSE Arca, Inc. has appropriate rules to facilitate transactions
in this type of security in all trading sessions.
2. NYSE Arca, Inc. surveillance procedures are adequate to properly
monitor the trading of the Shares on the Exchange.
3. NYSE Arca, Inc. will distribute an Information Bulletin to its
ETP Holders prior to the commencement of trading of the Shares on the
Exchange that explains the terms, characteristics, and risks of trading
such shares.
4. NYSE Arca, Inc. will require that investors purchasing Shares
directly from the Trust (by delivery of the Basket Silver Amount) will
receive a prospectus and that ETP Holders purchasing Shares from the
Trust for resale to investors will deliver a prospectus to such
investors.
5. The Exchange will cease trading in the Shares if: (a) the
listing market stops trading the Shares because of a regulatory halt
similar to NYSE Arca Equities, Inc. 7.12 or a halt because the ITV or
the value of the underlying silver is no longer available as described
in the Amex Order; or (b) if the primary market delists the Shares.
This approval order is conditioned on NYSE Arca, Inc.'s adherence
to these representations.
The Commission finds good cause for approving this proposed rule
change, as amended, before the thirtieth day after the publication of
notice thereof in the Federal Register. As noted previously, the
Commission previously found that the listing and trading of these
Shares on the Amex is consistent with the Act.\35\ The Commission
presently is not aware of any issue that would cause it to revisit that
earlier finding or preclude the trading of these funds on the Exchange
pursuant to UTP. Therefore, accelerating approval of this proposed rule
change should benefit investors by creating, without undue delay,
additional competition in the market for these Shares.
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\35\ See Amex Order.
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V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (SR-PCX-2005-117), as amended, is hereby
approved on an accelerated basis.\36\
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\36\ 15 U.S.C. 78s(b)(2).
[[Page 14982]]
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\37\
Nancy M. Morris,
Secretary.
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\37\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E6-4270 Filed 3-23-06; 8:45 am]
BILLING CODE 8010-01-P
