No L 19/30 Official Journal of the European Communities 21. 1. 87 COMMISSION DECISION of 10 December 1986 relating to a proceeding under Article 85 of the EEC Treaty (IV/31.614 — The London Meat Futures Exchange Limited) R (Only the English text is authentic) (87/47/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 (), as last amended by the Act of Accession of Spain and Portugal, and in particular Article 2 thereof, Having regard to the notification and application for negative clearance submitted on 24 July 1985 relating to - the articles of association and the rules and regulations of the London Meat Futures Exchange Limited, Having regard to the summary of the notification published () 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 Meat Futures Exchange Limited (LMFEL) is one of many commodity markets estab- lished 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 and, increasingly, supervision of the membets by the Assoiation of Futures Brokers and Dealers Limited (AFBD). ()  The object of the LMFEL is to set up and to ad- minister a terminal market in London for various meat products. 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 () OJ No 13, 21. 2. 1962, p. 204/52. () OJ No C 251, 8. 10. 1986, p. &. @ Q) ©) persons involved in commodity trading to protect themselves from the risks of adverse price move- ments. The LMFEL provides a market floor for trading and price-making, determines various ‘technical ques- tions such as allowable delivery months and stan- dard 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 in a ring, making bids and offers through the system known as ‘open outcry’. The International Futures Markets in London are among the principal markets used in international commodity merchandising and they contribute to the stability and smooth operation of world trade and to world pricing mechanisms. The relative size of the LMFEL compared with its most important competitors is shown below : Annual volumes of trade (lots traded) in pig meat Year London (') Chicago () Mid-America (%) 1984 24 263 2169030 112877 1985 15479 1719 861 74 338 (*) One lot is currently 50 pig carcases. This LMFEL contract commenced trading on 16. 3. 1984, () One lot is cutrently 30 000 lbs. (®) One lot is currently 15000 lbs. Two new contracts commenced trading on 2 June 1986 : (a) A live cattle cash settlement contract for lots of 5000 kilograms. This contract is for settlement against the meat and livestock commission certified medium steer price. : (b) A pig contract for cash settlement of lots of 3250 kilograms. This is for settlement against the meat and livestock commission average for all pigs price. , In respect of each contract dealing is generally up to 13 months forward with all months other than December being delivery months.