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

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  • Wei, Zhengle

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.

Suggested Citation

  • Wei, Zhengle, 2025. "Analysis of the Impact of off Exchange Derivatives Trading on Capital Market Efficiency Improvement," European Journal of Business, Economics & Management, Pinnacle Academic Press, vol. 1(4), pages 131-138.
  • Handle: RePEc:dba:ejbema:v:1:y:2025:i:4:p:131-138
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