6. 1. 87 Official Journal of the European Communities No L 3/27 COMMISSION DECISION of 4 December 1986 relating to a proceeding under Article 85 of the EEC Treaty (IV/30.439 — Petroleum Exchange of London Limited) (Only the English text is authentic) (87/2/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 by the International Petro- leum Exchange of London Limited on 20 August 1981, in relation to the Articles of Association and the Rules and Regulations of the Association, 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 : 1. THE FACTS (1)  The International Petroleumn Exchange of London Limited (IPE) is one of many commodity markets established in London. The commodity markets are self-regulatory organizations run by committees of management or by the Directors of member firms selected by members 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, increa- singly, supervision of the members by the Associa- tion of Futures Brokers and Dealers Limited (AFBD). (2  The object of the IPE is to set up and to administer a terminal market in London for petroleum-based 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 persons involved in commodity trading to protect () OJ No 13, 21. 2. 1962, p. 204/62. () OJ No C 163, 1. 7. 1986, p. 3. &) “) themselves from the risks of adverse price move- ments. The IPE 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 procedures, and the provi- sion 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 business of the IPE is run by the Directors of member firms. The International Futures Markets in London are among the principal markets used in international commodity merchandizing, and they contribute to the stability and smooth operation of world trade and to world pricing mechanisms. So far as gas oil and crude oil are concerned, the figures below shoe the relative size of the IPE compared with its most . important competitor, i.e. the futures market for gas oil and crude oil in New York. ‘Annual volumes of trade (lots traded) in gas oil 1981 to 1985 Year London New York (NYMEX) 1981 149 000 995 506 1982 623 308 1745 526 1983 608 529 1868 322 1984 535495 2091 546 1985 509 886 2207733 NB: One lot (IPE) currently 100 tonnes; One lot (NYMEX) is 1 000 barrels; 1 tonne = 7,46 barrels. Annual volumes of trade (lots traded) in crude oil 1981 to 1985 Year London New York 1981 - — — 1982 — —_ 1983 2783 323153 1984 4 361 1 840 342 1985 4233 3980 867 NB: One lot = 1000 barrels.