31.12. 85 Official Journal of the European Communities No L 369/25 COMMISSION DECISION of 13 December 1985 relating to a proceeding under Article 85 of the EEC Treaty (IV/27.590 - London Sugar Futures Market Limited) (Only the English text is authentic) (85/563/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation No 17 of 6 February 1962, first Regulation implementing Articles 85 and 86 of the Treaty (1), as last amended by the Act of Accession of Greece, and in particular Article 2 thereof, Having regard to the notification and application for negative clearance submitted on 29 June 1973 and on 20 May 1985 by the London Sugar Futures Market concerning the Rules and Regulations of the Association, Having regard to the summary of the notification published (2) pursuant 1o Article 19 (3) of Regulation No 17, After consulting the Advisory Committee on Restrictive Practices and Dominant Positions, I. FACTS The London Sugar Futures Market (LSFM) is one of many commodity markets established in London. The commodity markets are self-regulatory organizations run by Committees of Management selected by members from amongst themselves, aided by secretariats, and using powers given to them by their members in market rule books. Although the markets are self-regulating, there is an element of supervision by the Bank of England. The object of the LSFM is to set up and to administer a futures market in London for sugar. A terminal market or a futures market provides organized facilities for concluding contracts for the purchase and sale of a commodity to be delivered at named future dates. Futures markets have been developed primarily to enable persons involved in commodity trading to protect themselves from the risks of adverse price movements. (*) OJ No 13, 21. 2. 1962, p. 204/62. (3) O] No C 204, 13. 8. 1985, p. 5. The LSFM provides a market floor for trading and price-making, determines various technical questions such as allowable delivery months and the standard contract terms and procures the provision of clearing and settlement facilities. Trading is done on the floor of the market where dealers face each other with bids and offers being made by the system known as ‘open outcry’. There are two basic contracts currently traded under the rules of the LSFM: (a) The first contract is for a white beet or cane crystal sugar or refined sugar of any origin, of the crop or season current at the time of delivery, of a quality defined in detail in the contract rules. The contract price is free on board and stowed in hold at one of the following ports: Antwerp, Bremen, Calais, Copen- hagen, Dunkirk, Dublin, Elmshaven, Hamburg, Hull, Immingham, Le Havre, Rotterdam, Rouen or Vlissingen. (b) The second contract is for raw cane sugar of a quality defined in detail in the rules and originating in certain specified countries. The contract price is free on board and stowed in hold at a United Kingdom port. Both contracts are for lots of 50 tonnes (or any multiple of 50 tonnes). Tradirg is up to 15 months forward in the delivery months: March, May, August, October and December. All contracts traded on the London Sugar Futures Market must be registered with International Commodities Clearing House Limited (‘ICCH’), an independent service company which provides clearing and settlement facilities for the LSFM. ICCH has a substantial capital and reserves and is wholly owned by six clearing banks. The principal functions of ICCH are to maintain and organize ‘daily clearing’ of all trades and provide a guarantee for due fulfilment of contracts, in accordance with the rules of the LSFM, to clearing members in whose names such contracts are registered. There are two main classes of membership, Full Membership and non-voting Membership. The first class is limited to 35 Full Members. The non-voting Membership is sub-divided into two classes: Overseas Affiliated Members and Associate