Of this overall notional amount, 67% are rates of interest contracts, 8% are credit default swaps (CDS), 9% are foreign exchange agreements, 2% are commodity contracts, 1% are equity agreements, and 12% are other. Due to the fact that OTC derivatives are not traded on an exchange, there is no central counter-party. For that reason, they undergo counterparty danger, like an ordinary agreement, since each counter-party counts on the other to perform.A derivatives exchange is a market where individuals trade standardized contracts that have actually been specified by the exchange. A derivatives exchange acts as an intermediary to all related transactions, and takes initial margin from both sides of the trade to function as a guarantee. The world's biggest derivatives exchanges (by variety of deals) are the Korea Exchange (which lists KOSPI Index Futures & Options), Eurex (which notes a large range of European products such as rates of interest & 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 agreed by leaders at the 2009 G-20 Pittsburgh top in September 2009. In December 2012, they launched a joint statement to the effect that they recognized that the marketplace is a global one and "securely support the adoption and enforcement of robust and constant standards in and across jurisdictions", with the objectives of mitigating risk, enhancing openness, safeguarding versus market abuse, preventing regulatory gaps, minimizing the capacity for arbitrage opportunities, and cultivating a level playing field for market individuals.