WASHINGTON, (Reuters) – The U.S. Securities and Exchange Commission said on Tuesday it approved rule changes to allow the American Stock Exchange to list shares in Barclays Plc’s iShares Silver Trust, the first silver-linked exchange-traded security.
Before the Silver Trust shares can begin trading, the SEC must sign off on a registration statement allowing them to be publicly issued. "The registration statement has not yet been declared effective," said SEC spokesman John Heine.
The iShares Silver Trust shares, to be offered by Barclays Global Investor (BGI), are designed to track the price of the metal. BGI is the leading exchange-traded fund provider.
"The Amex is glad to see the SEC make an important step toward making the iShares Silver Trust available to the public. We look forward to another BGI listing," said Cliff Weber, senior vice president of the ETF marketplace at the Amex.
BGI sought approval for the trust in June and said it would be backed by bullion held in vaults in London, with each share initially worth about 10 ounces of silver.
"In effect, purchasing Silver Shares will provide investors a new mechanism to participate in the silver market," the SEC said in its rule-change approval posted on its Web site.
The amount of silver associated with each basket and each individual share is expected to decrease over time as the trust pays maintenance fees and other expenses, the agency said.
Silver Shares will be issued in baskets of 50,000 shares or multiples thereof and will be traded on the Amex like other securities, such as shares in the iShares COMEX GOLD Trust and the streetTracks Gold Trust, the SEC said.
At the close of trading on Tuesday, silver for May delivery at the COMEX division of the New York Mercantile Exchange was at $10.5650 per ounce, up 20.3 cents, on the day.
Tuesday’s intraday high on the COMEX of $10.58 was the priciest level for silver futures seen since October 1983.
The Silver Users Association, a silver industry group, has come out against the creation of the Barclays security amid concerns that it could make silver too expensive or illiquid.
The SEC said in its order that the Silver Shares will increase the efficiency and transparency of silver markets.
"The commission also does not believe that the Silver Shares are likely to cause serious liquidity problems in the silver market," the investor protection agency said.
Fonte: Reuters
