The International Petroleum Exchange is based in downtown London and established the Gas Oil Futures contract in 1988. This contract is based on Gas Oil of "Merchantable Quality" meeting exact specification and tolerances listed by IPE. The contract offers users the opportunity to make or take physical delivery of gas oil. This can be achieved through the standard delivery mechanism, althernative delivery procedures or exchange for physicials (EFP) transactions. There is no restriction on the size of the position taken and all IPE contracts are cleared by the London Clearing House, owned by six leading UK clearing bands, which has guaranteed backing of £150.