The innovation of financial instruments means that the financial industry can timely create new and diversified financial products, such as securities, bills of exchange, financial futures and other trading objects with new characteristics in terms of payment method, term, security, liquidity, interest rate and income. The innovation of financial instruments is the most important content of financial innovation and the foundation 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.

(B) financial market innovation

Financial market innovation refers to the financial industry actively expanding the scope of financial business and creating new financial markets through the innovation of financial instruments. The European stock market originated in the early 1970s. American securities companies first set up branches in the European bond market in London, and then set up branches around the world to conduct international securities transactions. Other countries have followed suit. By the 1980s, with the internationalization of securities trading and the continuous progress of technology, the financial industry could not only engage in cross-border stock trading and bond trading, but also issue its own bonds and stocks in other countries, basically forming a global securities market. The European bill market is formed on the basis of the original European syndicated loan market and European bond market, which combines credit and bond flow and has the dual attributes of short-term bank credit and liquid securities.

(C) financial system innovation

Financial system innovation refers to the institutional changes of financial organizations or financial institutions. It not only refers to the financial innovation activities caused by the adjustment of financial policies and deregulation of financial authorities in various countries, such as establishing new organizations and implementing new management methods to maintain the stability of the financial system, but also includes the reforms made by financial organizations in the financial institution system.