No L 369/28 Official Journal of the European Communities 31.12. 85 COMMISSION DECISION of 13 December 1985 relating to a proceeding under Article 85 of the EEC Treaty (IV/27.591 - London Cocoa Terminal Market Association Limited) (Only the English text is authentic) (85/564/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 20 May 1985 by the London Cocoa Terminal Market Association concerning the Rules and Regulations of the Association, Having regard to the summary of the notification published (2) pursuant to Article 19 (3) of Regulation No 17, After consulting the Advisory Committee on Restrictive Practices and Dominant Positions, Whereas: I. FACTS The London Cocoa Terminal Market Association (LCTMA) 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 LCTMA is to set up and to administer a terminal market in London for cocoa. 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 (1) O No 13, 21. 2. 1962, p. 204/62. (2) O] No C 204, 13. 8. 1985, p. 7. developed primarily to enable persons involved in commodity trading to protect themselves from the risks of adverse price movements. The LCTMA 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’. The contract currently traded on the Cocoa Market is for 10 tonnes, or a multiple of 10 tonnes, of cocoa beans of a growth and quality defined in detail in Section 4 of the Rules of the LCTMA, delivered at contract price ex-warehouse approved by the LCTMA in the United Kingdom or delivered in approved warehouses in Amsterdam, Antwerp, Hamburg or Rotterdam. Dealing is up to 15 months forward in the delivery months: March, May, July, September and December. All contracts traded on the London Cocoa Terminal Market must be registered with International Commodities Clearing House Limited (‘ICCH’), an independent service company which provides clearing and settlement facilities for the LCTMA. ICCH has substantial capital and reserves and is wholly owned by six clearing banks. The principal functions of ICCH are to maintain and organize a ‘daily clearing’ of all trades and provide a guarantee for due fulfilment of contracts, in accordance with the rules of the LCTMA, to Clearing Members in whose names such contracts are registered. There are four classes of membership of the LCTMA. The first two classes of voting members are Broker Members and Home Members who are allowed to trade on the floor of the market. The rules allow a maximum of 18 Broker Members and 36 Home Members. The second two classes are (non-voting) Trade and Non-Trade Members. Their number is not limited. The criteria specified in the Articles for Broker and Home Membership are broadly similar and require an applicant for membership to meet certain financial requirements. A detailed statement of the criteria in force at the time of application may be obtained from the Secretary. The Broker Members are individuals whereas the Home Members are companies or firms. To become a Broker Member, the