The innovation of market system and financial instruments is the most important content of financial innovation and the basic core of all other financial innovations. For example, the innovation of financial instruments leads to the emergence of financial futures based on traditional financial products and general commodity futures, mainly including interest rate futures, currency futures and stock index futures. The reasons for innovation can be summarized as: 1. First of all, risk aversion is the main reason for international financial innovation. Compared with the past, the financial markets in the 1970s and 1980s were more risky. The implementation of floating exchange rate system, the use of monetary policy tools in western countries and the outbreak of debt crisis have made the credit risk of exchange rate and interest rate increasingly prominent in the international financial market. In this context, investors and borrowers not only need to disperse and avoid risks, but also need to increase the liquidity of financial assets and expand the sources of funds. These realities need to be the main driving force to promote financial innovation. Secondly, the policy factors in the international market directly promote the development of financial innovation. On the one hand, the control of financial activities and capital flows by countries after the war stimulated the evasive behavior of financial institutions and industrial and commercial enterprises. On the other hand, since 1980s, western countries have relaxed their control, and the trend of financial liberalization has dismantled the barriers of foreign markets and accelerated the process of financial innovation. The relaxation of international financial control has intensified the cross-competition among financial institutions, so multinational banks and some non-bank financial institutions actively participating in the international financial market must actively innovate in order to maximize the source of profits. The progress of science and technology and the rapid development of modern communication technology have accelerated the dissemination of information, reduced the income of traditional business departments and intensified price competition, thus stimulating the innovation of financial institutions. In addition, the trend of neoconservatism and economic liberalization has also promoted the innovation of international finance.