Editing Derivative (finance) (section)

===Exchange-traded derivatives===
[[Exchange-traded derivative contract|Exchange-traded derivatives]] (ETD) are those derivatives instruments that are traded via specialized [[derivatives exchange]]s or other exchanges. A derivatives exchange is a market where individuals trade standardized contracts that have been defined by the exchange.<ref name="hull" /> A derivatives exchange acts as an intermediary to all related transactions, and takes [[initial margin]] from both sides of the trade to act as a guarantee. The world's largest<ref name="foweek">''Futures and Options Week'': According to figures published in F&O Week October 10, 2005. See also [http://www.fow.com FOW Website].</ref> derivatives exchanges (by number of transactions) are the [[Korea Exchange]] (which lists [[KOSPI]] Index Futures & Options), [[Eurex]] (which lists a wide range of European products such as interest rate & index products), 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]]). According to BIS, the combined turnover in the world's derivatives exchanges totaled US$344 trillion during Q4 2005. By December 2007 the [[Bank for International Settlements]] reported<ref name="BIS2007" /> that "derivatives traded on exchanges surged 27% to a record $681 trillion."<ref name="BIS2007"/>{{rp|22}}