Analysis of the Impact of off Exchange Derivatives Trading on Capital Market Efficiency Improvement

Zhengle Wei

doi:10.71222/554vfe24

Authors

Zhengle Wei International School of Finance, Fudan University, Shanghai, 200433, China Author

DOI:

https://doi.org/10.71222/554vfe24

Keywords:

over-the-counter derivative trading, capital market efficiency, information transparency, resource allocation, blockchain technology

Abstract

In the modern financial system, over-the-counter (OTC) derivative trading plays a crucial role, with its flexibility and diversity significantly enhancing the operational efficiency of capital markets. OTC derivative trading improves market efficiency by facilitating information integration, increasing transparency, expanding the variety of trading instruments, and promoting the rational allocation of resources. This article examines the impact of information transparency, innovative trading instruments, and optimized resource allocation on capital market efficiency, alongside the distinct characteristics of OTC derivatives. Emerging technologies, particularly blockchain, offer new technical support for the development of OTC derivative markets, helping to balance efficiency gains with effective risk control. Further advancements in policy frameworks and technological innovation are expected to deepen the contribution of OTC derivative trading to the overall functioning of capital markets.

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