Ishares Silver Trust's Comment on Sales, Marketing and Customers
The Trust creates and redeems Shares on a continuous basis, but only in Baskets
of 50,000 Shares. Only registered broker-dealers who have entered into written
agreements with the Sponsor and the Trustee (each, an “Authorized Participant”)
can deposit silver and receive Baskets of Shares in exchange. Upon the deposit
of the corresponding amount of silver with the Custodian, and the payment of the
Trustee’s applicable fee and of any expenses, taxes or charges (such as
stamp taxes or stock transfer taxes or fees), the Trustee will deliver the appropriate
number of Baskets to the Depository Trust Company account of the depositing Authorized
Participant. As of the date of this report, Barclays Capital Inc., Citigroup Global
Markets, Inc., Credit Suisse Securities (USA), LLC, Goldman Sachs & Co., Goldman
Sachs Execution & Clearing L.P., J.P. Morgan Securities LLC., KCG Americas
LLC, Merrill Lynch Professional Clearing Corp., Morgan Stanley & Co. LLC.,
SG Americas Securities, LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc.,
UBS Securities LLC, Virtu Financial BD LLC and Virtu Financial Capital Markets,
LLC are the only Authorized Participants. The Sponsor and the Trustee maintain
a current list of Authorized Participants. Silver deposited with the Custodian
must meet the specifications for weight, dimensions, fineness (or purity), identifying
marks and appearance of silver bars as set forth in “The Good Delivery Rules
for Gold and Silver Bars” published by the LBMA.
Before making a deposit, the Authorized Participant must deliver to the Trustee
a written purchase order indicating the number of Baskets it intends to acquire
and the location or locations where it expects to make the corresponding deposit
of silver with the Custodian. The date the Trustee receives that order determines
the amount of silver the Authorized Participant needs to deposit (such amount,
the “Basket Silver Amount”). However, orders received by the Trustee
after 3:59 p.m. (New York time) on a business day are treated as received on the
next following business day. The Trustee has entered into an agreement with the
Custodian which contains arrangements so that silver can be delivered to the Custodian
in England, New York or at other locations that may be authorized in the future.
If the Trustee accepts the purchase order, it transmits to the Authorized Participant,
via facsimile or electronic mail message, no later than 5:00 p.m. (New York time)
on the date such purchase order is received, or deemed received, a copy of the
purchase order endorsed “Accepted” by the Trustee and indicating the
Basket Silver Amount that the Authorized Participant must deliver to the Custodian
in exchange for each Basket. Prior to the Trustee’s acceptance as specified
above, a purchase order only represents the Authorized Participant’s unilateral
offer to deposit silver in exchange for Baskets of Shares and has no binding effect
upon the Trust, the Trustee, the Custodian or any other party.
