HEDGE
Street.

RULE 12.37 SILVER VARIABLE PAYOUT CONTRACTS
(a) [unchanged]

(b) UNDERLYING - The Underlying for this Class of Contracts is the price, cents
per troy ounce (in US Currency), of Silver as calculated by HedgeStreet. HedgeStreet will
calculate the Underlying by applying a proprietary algorithm to a sampling of executed
trade prices'' in the Silver Futures Contracts (“SFC”) traded on the COMEX Division of
the New York Mercantile Exchange (“NYMEX”®"”). The SFC trade prices that will be
used to calculate the Underlying will be taken from the January, March, May, July,
September, or December SFC delivery months (“SFC Delivery Month”). The specific
delivery month that will be used will depend on the date on which the Underlying is being
calculated. For instance, each day that the Underlying is calculated that is on or after the
£ifth third business day before the end of February and on or before the fourth business day
before the end of April, the May SFC trade prices will be used. Each day that the
Underlying is calculated that is on or after the ith third business day before the end of
April and on or before the fourth business day before the end of June, the July SFC trade
prices will be used. This process will repeat itself, so that on the fourth third business day
before the end of the calendar month proceeding each January, March, May, July,
September, and December, the SFC trade prices to be used in calculating the Underlying
will move to the next succeeding futures month listed.

(c) - (n) [unchanged]

(0) CONTINGENCIES - If no level is actually announced on the Expiration Date
due to a delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number is released for
that Series._If there are less than 250 SFC trade prices available during a single trading day
prior to the issuance of a new Silver Contract_HedgeStreet may switch to the next available
SFC Delivery Month that provides at least 250 SFC trade prices.

” Supra, at fn 1.
D 1825 S. Grant Street
Supra, at fn 2. Suite 500
San Mateo, CA 94402
Tek 650.638.3500
www.hedgestreet.com Fax: 650.638.3501


st 299 Fl 24
Street. 99 Fi

Ue Yen SECRETARIAT
November 29, 2005

VIA EMAIL: secretary@cftc.gov

Ms. Jean A. Webb

Secretary of the Commission

Commodity Futures Trading Commission
3 Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

RE: Certification: HedgeStreet amending i) the listing cycle of Fixed Payout and
Variable Payout Silver Contracts and ii) clarifying certain defined terms in
Rule 12.29(b), (0), and 12.37(b), (0) - Submission pursuant to Commission
Regulation §40.6

Dear Secretary Webb:

Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended (“Act”), and
§40.6(a) of the regulations promulgated by the Commodity Futures Trading Commission
(the “Commission”) under the Act, HedgeStreet, Inc. (““HedgeStreet”) hereby submits to
the Commission amendments to the listing ¢ycle of Fixed Payout Silver Contracts and the
Variable Payout Silver Contracts. In addition, HedgeStreet is clarifying certain defined
terms in Rule 12.29(b), (0) and Rule 12.37(b), (0) (“Rules”). The amendments to the Rules
are defined in Exhibit A in accordance with Commission Regulation 40.6. The rule
deletions are stricken out and the amendments or additions are underlined.

Amendment to Listing Cycle

HedgeStreet currently lists both Fixed Payout and Variable Payout Silver contracts that
have an Underlying value that is based upon a random sampling of closing trade prices
taken from the NYMEX®” which are then incorporated into a HedgeStreet proprietary
algorithm in order to calculate an Underlying or Expiration Value for both types of Silver
contracts. In certain market situations, there may be limited trade prices available in order
for HedgeStreet to efficiently calculate an Underlying value.

HedgeStreet Rules 12.29 and 12.37 state that HedgeStreet will commence using the
January 2006 Silver Futures Contract traded on NYMEX® (“SFC”) on or after the third
business day before the end of November for all Silver contracts listed until the fourth
business day before the end of December, at which point, HedgeStreet would switch to the

; NYMEX® is a registered service mark of the New York Mercantile Exchange, Inc. HedgeStreet, Inc. is not

affiliated with the New York Mercantile Exchange, Inc. and neither the New York Mercantile Exchange, nor its

affiliates, sponsor or endorse HedgeStreet, Inc. in any way.
1826 S. Grant Strest
Suite 500
‘San Mateo, CA 94402
Tel: 650.638.3500

www.hedgestreet.com Fax: 650.638.3501


A
HEDGE
Street.

March 2006 SFC. However, there are currently very little trade prices available in the
January 2006 SFC and HedgeStreet would therefore like to commence listing contracts
based on the March 2006 SFC tomorrow, November 30", 2005 as there are sufficient SFC
trade prices available to HedgeStreet in order to efficiently calculate the Underlying value.

HedgeStreet intends to make these amendments effective as of November 30, 2005.
No contracts that have open interest will be effected by these amendments.

No substantive opposing views were expressed to HedgeStreet with respect to these
additions.

HedgeStreet hereby certifies that the Contracts and the clearing of the Contracts, including
all rules defining the terms and conditions of said Contracts contained herein, complies
with the Act and the Commission Regulations adopted thereunder.

Should you have any questions regarding the above, please do not hesitate to contact
Stephanie Ford by telephone at (650) 638-3511 or by email at sford@hedgestreet.com.

Sincerely,

Stephanie Ford
Vice President, Legal & Compliance

ce: Tom Leahy —- CFTC
Phil Colling - CFTC
Clarissa Manansala — HedgeStreet, Inc.

www. hedgestreet.com

1826 S. Grant Street
Suite 500

‘San Mateo, CA 94402
Tek 650.638.3500
Fax: 650.638.3501


HEDGE
Street.
EXHIBIT A

RULE 12.29 SILVER CONTRACTS
(a) [unchanged]

(b) UNDERLYING - The Underlying for this Class of Contracts is the price, cents
per troy ounce (in US Currency), of Silver as calculated by HedgeStreet. HedgeStreet will
calculate the Underlying by applying a proprietary algorithm to a sampling of executed
trade prices’ in the Silver Futures Contracts (“SFC”) traded on the COMEX Division of the
New York Mercantile Exchange (“NYMEX”®*). The SFC trade prices that will be used to
calculate the Underlying will be taken from the January, March, May, July, September, or
December SFC delivery months (“SFC Delivery Month”). The specific delivery month that
will be used will depend on the date on which the Underlying is being calculated. For
instance, each day that the Underlying is calculated that is on or after the fifth third
business day before the end of February and on or before the fourth business day before the
end of April, the May SFC trade prices will be used. Each day that the Underlying is
calculated that is on or after the ih third business day before the end of April and on or
before the fourth business day before the end of June, the July SFC trade prices will be
used. This process will repeat itself, so that on the fourth third business day before the end
of the calendar month proceeding each January, March, May, July, September, and
December, the SFC trade prices to be used in calculating the Underlying will move to the
next succeeding futures month listed.

(c) - (n) [unchanged]

(0) CONTINGENCIES - If no level is actually announced on the Expiration Date
due to a delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number is released for
that Series. If there are less than 250 SFC trade prices available during a business day prior
to the issuance of a new Silver Contract HedgeStreet may switch to the next available SFC
Delivery Month that provides at least 250 SFC trade prices.

Rules 12.30 - 12.36 [unchanged]

° Supra, at fa 1.
° Supra, at fn 2.

www.hedgestreet.com

1825 S. Grant Street
Suite 500

‘San Mateo, CA 94402
ot: 650.638.3500
Fax: 650.638.3501