No L 222/24 Official Journal of the European Communities 10. 8. 87 COMMISSION DECISION of 13 July 1987 relating to a proceeding under Article 85 of the EEC Treaty (IV/31.764 — Baltic International Freight Futures Exchange Limited) (Only the English text is authentic) (87/408/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Gommunity, 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 31 December 1985 by the Baltic International Freight Futures Exchange Limited concerning the Articles, 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. THE FACTS (1) The Baltic International Freight Futures Exchange Limited (BIFFEX) was incorporated  on 21 January 1985 by Anderson Man Ltd, Cargill Investor Servieces Ltd, Coley and Harper Ltd, and Merrill, Lynch, Pierce, Fenner & Smith (Brokers and Dealers) Ltd. Its purpose is the establishment and running of a market dealing in freight futures contracts in London which provides facilities for shipowners, charterers and users of shipping transport in general, to protect themselves against adverse price movements in freight rates. BIFFEX enables them to agree to buy or sell standardized freight futures contracts. (*) OJ No 13, 21. 2. 1962, p. 204/62. (2) O] No 114, 29. 4. 1987, p. 6. Agreements made on the Exchange are based upon, and settlement price is fixed by reference to, the Baltic Freight Index. This index is comprised of 13 of the most important dry-bulk cargo freight routes being chartered on the international market. It provides a continually calculated measure of world freight rate movements weighted to reflect the relative importance of the voyages included. Each day a panel of Baltic Exchange Members submits the spot rate which they consider applicable to each voyage for the relevant cargo. The secrecy of this information allows known fixture rates to be included; the panel members are unaware of each other’s contribution. Computerized assessment of the information provides for a daily index which reflects each day’s spot market rate movements. The contract currently traded on the market is on ocean freight rates for dry cargo. A second contract introduced on 10 February 1986, was suspended for an indefinite period on 19 December of the same year. It was based on the Baltic Tanker Index, similarly compiled by taking a number of medium-sized dirty tanker voyages. Bids and offers are quoted in ‘index points’ of 1,0 with a value of $ 10 per lot. The contract price is a multiple of the minimum price fluctuation, i.e. one-half of one index point. There is no physical delivery of an underlying cash commodity. Contracts can be liquidated by an offsetting purchase or sale at any date prior to maturity. Positions which are held until contract maturity are automatically settled in cash, " based on an average of the relevant Baltic Index over the last trading days of the month. BIFFEX offers a market for trading by the ‘open outcry’ method. In addition, it provides the advantage that the performance of any transaction concluded on the floor is guaranteed by a clearing house.