Of this overall notional quantity, 67% are interest rate agreements, 8% are credit default swaps (CDS), 9% are foreign exchange contracts, 2% are commodity agreements, 1% are equity contracts, and 12% are other. Since OTC derivatives are not traded on an exchange, there is no main counter-party. For that reason, they undergo counterparty risk, like a common agreement, considering that each counter-party counts on the other to perform.A derivatives exchange is a market where individuals trade standardized contracts that have actually been defined by the exchange. A derivatives exchange acts as an intermediary to all related deals, and takes initial margin from both sides of the trade to act as a warranty. The world's biggest derivatives exchanges (by number of transactions) are the Korea Exchange (which lists KOSPI Index Futures & Options), Eurex (which notes a wide variety of European items such as interest rate & index items), and CME Group (made up of the 2007 merger of the Chicago Mercantile Exchange and the Chicago Board of Trade and the 2008 acquisition of the New York Mercantile Exchange). In November 2012, the SEC and regulators from Australia, Brazil, the European Union, Hong Kong, Japan, Ontario, Quebec, Singapore, and Switzerland fulfilled to talk about reforming the OTC derivatives market, as had actually been concurred by leaders at the 2009 G-20 Pittsburgh summit in September 2009. In December 2012, they launched a joint declaration to the impact that they recognized that the market is a global one and "strongly support the adoption and enforcement of robust and constant standards in and throughout jurisdictions", with the objectives of mitigating risk, improving transparency, protecting versus market abuse, preventing regulatory spaces, minimizing the potential for arbitrage chances, and promoting a equal opportunity for market individuals.