Derivative markets were in existence in the world since a very long time. In India too we find that derivative markets were in existence after 2000. But still it has not gained so much popularity as in other parts of the world. The present study aimed to find out the people vies regarding derivative market and also to know the impact of derivative market on financial system. For this primary data had been collected through a well designed structured questionnaire. This was conducted during the period of June 2014 to July 2014. The sample size of 70 questionnaires was filled by the bank officials in banks within Chandigarh, Panchkula and Mohalli. Chi-square test had been performed. The study found that people have lack of knowledge regarding derivative market and efficient derivative market has impact on financial system. Thus there is need to educate people through seminars and workshops on derivative trading in order to have a strong financial system.
Derivatives, chi-square, financial system
