The Japanese yen is the national currency of Japan and the currency of the accounts of the Bank of Japan, the Japanese central bank. As of April 2004, average daily turnover of the Japanese yen in the foreign exchange market is the third-most-traded currency in the world, accounting for approximately 20% of global foreign exchange transactions. The USD/Japanese yen pair is the second-most-traded currency pair, accounting for approximately 17% of the global foreign exchange transactions.
CurrencyShares Japanese Yen Trust (the Trust) is a grantor trust. The Trust issues shares (the Shares) in blocks of 50,000 (a Basket) in exchange for deposits of Japanese yen and distributes Japanese yen in connection with the redemption of Baskets. The investment objective of the Trust is for the shares to reflect the performance of the Japanese yen/United States dollar exchange rate. The Shares represent units of fractional undivided beneficial interest in, and ownership of, the Trust. The Shares seeks to provide institutional and retail investors with a means of gaining investment benefits similar to those of holding Japanese yen. The Trust’s assets primarily consist of Japanese Yen on demand deposit in two deposit accounts maintained by JPMorgan Chase Bank N.A., London Branch: a primary deposit account, which earns interest, and a secondary deposit account that does not earn interest. The Trust’s sponsor is Rydex Specialized Products LLC, doing business as Rydex Investments.
One of the CurrencyShares trusts