Financial derivatives play an important role in the global financial market, but the market volatility and systemic risks they trigger are becoming increasingly prominent. This article analyzes the current situation of the financial derivatives market and reveals the threats to market stability posed by excessive speculation, lack of transparency, and complex design. With the pace of financial innovation, derivative products are becoming increasingly complex, and investors' risk awareness and management abilities are relatively lagging behind, further exacerbating market risks. To effectively address these challenges, strategies have been proposed, including innovative regulatory mechanisms, strengthened information disclosure, and simplified derivative design, with the aim of optimizing market structure, enhancing transparency and understanding, reducing systemic risks, and ensuring the healthy development of financial markets. The coordinated development of innovation in financial derivatives and risk management is crucial for building the long-term stability of the global financial market.

Zhengle Wei. Research on Innovative Design of Financial Derivatives and Market Risk Management Strategies. International Journal of Social Sciences and Economic Management (2026), Vol. 7, Issue 1: 19-27. https://doi.doi.org/10.3807/IJSSEM.2026.070103.

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